State-owned Abu Dhabi National Oil Company (ADNOC) has announced that it will boost supply to more than 4 million barrels per day in April, following the collapse in the OPEC+ agreement.
“In line with our production capacity growth strategy announced by the Supreme Petroleum Council, we are in a position to supply the market with over 4 million bpd in April. In addition, we will accelerate our planned 5 million bpd capacity target,” ADNOC Group CEO, Dr Sultan Ahmed Al Jaber said in a statement.
“In response to market conditions, and to provide better forward visibility to our customers, ADNOC will shortly announce forward prices for the months of March and April 2020. This decision has been made to ensure that our customers have visibility of the price so they can plan accordingly,” he said.
The new target would mean adding more than 1 million barrels a day to what the UAE pumped in February, according to Bloomberg data.
ADNOC’s announcement comes after Saudi Aramco said on Wednesday that it will be raising capacity to 13 million bpd from 12 million bpd.
Aramco, the world’s biggest oil exporter, will be boosting its output capacity for the first time in at least a decade.
“The company is exerting its maximum efforts to implement this directive as soon as possible,” said CEO Amin Nasser.
Crude oil prices dropped to their lowest earlier this week since the 1991 Gulf War following the breakdown in the alliance between Saudi Arabia-led OPEC and other producers such as Russia over the continuation of supply cuts.
While the prices have slightly recovered, the prospect of having increased supply amidst sluggish demand looms over the market.
“As a result of the steps we’ve taken over the last four years, ADNOC is far stronger and better positioned to respond to current market conditions,” said Al Jaber.
“Our focus on driving performance, profitability and efficiency has made us more resilient, agile and responsive to market dynamics. These guiding principles remain unchanged as we move forward with projects across our value chain,” he added.