Saudi Aramco says it will boost production to 12.3 million barrels per day. Russia responded by saying it could boost production by half a million a day, which would put that country’s output to a record 11.8 million barrels per day. Despite the ramp up, reports say both sides are continuing to negotiate. Nansen Saleri, Quantum Reservoir Impact founder and former Saudi Aramco head of reservoir management, joins “Squawk Box” to discuss.
An all-out oil price war has created an “unprecedented” situation in energy markets, analysts told CNBC Monday, with traders impatiently waiting to see which of the world’s largest oil producers will blink first.
It comes after OPEC and non-OPEC allies, sometimes referred to as OPEC+, failed to agree on the terms of deeper supply cuts late last week.
The fallout between OPEC kingpin Saudi Arabia and non-OPEC leader Russia has kickstarted an oil price war, with crude futures on track to register their biggest daily rout since the first Gulf War in 1991. Oil prices were already reeling from the coronavirus outbreak, with many increasingly concerned about the outlook for oil demand growth.
International benchmark Brent crude traded off lows at $37.24 Monday afternoon, still down more than 17%, while U.S. West Texas Intermediate (WTI) stood at $34.55, around 16% lower. Brent futures were down more than 30% at one stage in the session, before paring some of their losses.
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