Riyadh – Mubasher: The Saudi Arabian Oil Company (Saudi Aramco) has set the selling price of propane for April futures at $230 per tonne, down from $430 per tonne in March.
Aramco further announced, as cited by Reuters, that the selling price of butane in April has been set at $240 per tonne, down from its price in March at $480 per tonne.
Saudi Aramco announced on 11 March that it received directives from the Ministry of Energy to work on raising the level or maximum production capacity to 12-13 million barrels per day.
Aramco lowered the crude official selling price for April 2020 for all its crude oil grades to all destinations, after the fall of OPEC’s agreement with Russia regarding oil output last Friday.
A source in the Saudi energy ministry said yesterday that the kingdom intends to increase its oil exports, starting from next May, by around 600,000 barrels per day, raising the total Saudi oil exports to 10.6 million barrels per day, according to the Saudi Press Agency (SPA).
A state of pessimism is dominant among oil investors due to the halt of economic activity around the world as part of efforts to control the spread of the coronavirus (COVID-19), amidst expectations of a decline in the global demand for crude by 20 million barrels per day.
Moreover, oil prices were negatively affected by the price war between OPEC producers and Russia, amid an increase in supply and lower prices by both sides, which resulted in forecasts of a market oversupply soon.
The Saudi ministry of energy said on 17 March, as the kingdom decided to raise its exports of crude oil during the next few months to exceed 10 million barrels per day.