Saudi Aramco Poised To Lift Oil Output, Kuwait Backs Ramp-Up

Source: www.investors.com --- Tuesday, May 10, 2016
saudiarabia is ready to raise oil production this year despite the market glut, as the world’s top oil exporter plans to continue protecting its market share amid a change in leadership at the oil ministry. Another top oil producer, Kuwait, also backed plans Tuesday to ramp up oil output to 4 million barrels a day by 2020, representing a more than 40% jump from its current level. saudi Aramco CEO Amin Nasser said demand is growing in places like the U.S. and India, and he vowed to meet it with extra output from the state-run company. Aramco will also boost production capacity by 33% at its Shaybah field to 1 million barrels a day in the coming weeks and plans to double natural gas production over the next 10 years. saudiarabia is already pumping near record levels, with markets still oversupplied. Despite the prospect of a further glut, crude prices rose as a massive wildfire in Canada’s tar sands district in Alberta province continues to disrupt 2.5 million barrels of daily production capacity. Attacks on Nigeria’s oil assets also have send output to near a 22-year low, according to Reuters. Brent crude surged 3.8% to $45.30 per barrel Tuesday, and U.S. crude was up 2.5% to $44.52 per barrel. On the other hand, saudiarabia wants to end its reliance on oil. A public offering of less than 5% of Aramco is expected in 2017 or 2018 and could rival Alibaba ’s ( BABA ) $25 billion IPO as the largest ever. Exxon Mobil ( XOM ), BP ( B ...