Saudi Aramco is producing more than 9.9 million barrels a day of crude as it fully recovers from the worst ever attacks on its energy infrastructure, reported Bloomberg.
Ibrahim Al-Buainain, the CEO of Saudi Aramco’s energy trading unit, said that output reached that level on 25 September 2019 and is a ‘little bit’ higher now, adding that the Kingdom has also restored some spare capacity following the 14 September attacks.
“On the 25th of September, yes, we reached that target of production, we produce depending on the market and depending on capacity, so actually we are a little bit higher than this,” said Al-Buainain.
Oil markets surged after an attack on some of Saudi Arabia’s biggest processing plants, knocking out about five per cent of global crude supply with one blow.
Al-Buainain had initially expected the strikes to push oil prices higher by $10 a barrel. While Brent surged as much as $11.73 on the first trading day after the attacks, it has since given up most of that gain as the state-owned energy giant quickly restored capacity and production, while global demand concerns remain.
Saudi Aramco is building redundancy into its systems that allowed the company to be resilient to the assault on the Abqaiq processing plant and Khurais field, Al-Buainain.
The attacks, however, highlighted the fragility of global supply chains and the vulnerability of Saudi Arabia’s lifeblood industry, raising the risk to reliable flows from the Arabian Gulf after a series of tanker bombings in May and June 2019.
The company cut refinery runs at home in the days following the strikes to make more crude available to customers and offered some of those buyers alternative grades to meet its supply commitments. Saudi Aramco Products Trading Company, which Al-Buainain heads, also bought refined products on the market to make up for any shortfalls in fuels at home.