Saudi Aramco said Tuesday that the company would increase its crude output to 12.3 million barrels per day in April.
The new production level will be ”an increase of 300,000 barrels per day over the company’s maximum sustained capacity of 12 MMBD,” Aramco said in a statement to the Saudi stock exchange.
“The Company has agreed with its customers to provide them with such volumes starting April 1, 2020. The company expects that this will have a positive, long-term financial effect.”
Gulf stock markets rebounded strongly in opening trade Tuesday, led by Saudi Tadawul as oil prices bounced after heavy losses.
Aramco shares were 8.64 percent higher to $8.91 during late trade. Aramco shares trading was earlier suspended, upon the oil company’s request, starting 11:48 a.m. local time.
Oil prices rose on Tuesday to recover from the largest loss recorded in one day in nearly 30 years.
According to a notification sent to customers by Saudi Aramco, the Kingdom’s oil giant will prices cut between $4 to $8 per barrel, with the biggest discounts being offered to buyers in northwest Europe and the US.