On April 1, 2020, the state-owned Saudi Aramco reportedly increased crude oil output to a record capacity of 12 million barrels per day despite significantly reduced demand and pressure from the United States. The coronavirus (COVID-19) pandemic and the subsequent global decrease in travel have resulted in a substantial drop in oil demand. Additionally, Washington has encouraged Riyadh to halt competition with Russia for market share. The oil price dispute also threatens the future of US shale output, which has surged in recent years.
The surge in output came one day after the expiration of a pact to reduce oil production that included members of the Organization of the Petroleum Exporting Countries (OPEC), as well as Russia and other producing nations. After the output surge, oil prices sank to $25 per barrel, reaching an 18-year low. Saudi Aramco has given no indication when it intends to reduce the current spike in crude oil output.
