Saudi Arabia fulfills its promise to flood markets with cheap oil

US, WASHINGTON (ORDO NEWS) — Saudi Arabia fulfilled its promise to increase oil exports in April, as the first crude oil shipments are already destined for Europe and the US, which is a clear sign that the oil price war is still in full swing, Bloomberg reports.

According to ship tracking data, the kingdom has loaded several supertankers that it hired earlier this month to increase its ability to increase exports.

In addition, Riyadh has used the past few weeks to deliver large quantities of crude oil for storage in Egypt, which is a transit point for deliveries to the European market.

Such steps may indicate that Riyadh is ramping up oil production to the goal of delivering a record 12.3 million barrels per day in April compared with about 9.7 million in February, despite US pressure to put an end to the price war on the market.

Earlier this month, Saudi Arabia lowered its official selling prices and announced an increase in production after Russia refused to join other countries in the OPEC + alliance to reduce production.

The announcement, which many on the market perceived as the start of a price war, led to a drop in oil prices for Brent and WTI. Since then, the drop in oil demand due to travel restrictions amid the spread of coronavirus in the world has led to even greater price reductions.

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