Saudi Arabia could ramp up oil production even faster

The Kingdom could act quickly to raise output as it benefits from surging prices amid the Russia-Ukraine crisis

Saudi Arabia has the ability to quickly ramp up oil production, potentially adding a million barrels per day (bpd) to the market within weeks if needed, according to industry sources.

The Kingdom, which currently produces around 10 million bpd, has been under pressure from major oil consumers to increase output in order to help alleviate the current supply crunch and bring down prices.

While Saudi Arabia has so far resisted calls to increase production, saying that it is already meeting its commitments under the OPEC+ agreement, the ongoing crisis in Ukraine could provide the impetus for a change in policy.

With Russia, the world’s second-largest oil producer, facing sanctions from the West, the global oil market is facing a major supply disruption.

This has led to a sharp rise in oil prices, with Brent crude reaching a 13-year high of $139 per barrel last week.

In this environment, Saudi Arabia could benefit from increasing production, as it would allow the Kingdom to take advantage of the high prices.

According to industry sources, Saudi Arabia has the capacity to increase production by as much as 1 million bpd within a matter of weeks.

This would require the Kingdom to bring online some of its spare capacity, which currently stands at around 1.5 million bpd.

While Saudi Arabia has been reluctant to increase production in the past, the current crisis could provide the necessary incentive for a change in policy.

If the Kingdom does decide to increase production, it would be a major development that could help to ease the current supply crunch and bring down prices.