Saudi Arabia's state-run oil giant Saudi Aramco said Tuesday it would increase its crude oil production to 12.3 million barrels a day in April, a record amount.
The move seems to make good on the country's promise over the weekend to increase output after Russia refused to cooperate on cutting production. That led to a 25% plunge in the price of crude on Monday.
In a filing made Tuesday on Riyadh's Tadawul stock market, Aramco - formally known as the Saudi Arabian Oil Co. - said that the increase in production represented a rise of 300,000 barrels per day.
"The company has agreed with its customers to provide them with such volumes starting 1 April 2020," it said in the filing. "The company expects that this will have a positive, long-term financial effect."
Saudi Aramco shares were up 9.7% in trading Tuesday on the Tadawul to 30.95 riyals, or $8.25, giving the world's most-valuable company a valuation of $1.65 trillion.
It came a day after Aramco shares collapsed by 10% and were pulled from trading for reaching the Tadawul's maximum permitted loss in a day, dropping its valuation to $1.4 trillion. It offered only a sliver of its shares on the Tadawul for investors.
Aramco's decision likely will flood global energy markets and put further pressure on prices. The company had reached $2 trillion in early days of trading in December.
