EGYPT – Egyptian oil producers have ramped up production of the fossil fuel to reach the highest level in the country’s history despite depressed demand in the international market due to the raging COVID-19 pandemic.
Egypt’s Petroleum Ministry in a statement said that the Egyptian General Petroleum Corporation (EGPC)’s crude oil production exceeded 62,000 barrels per day (bpd) for the first time since its establishment in 1957.
The ministry of petroleum further noted that this high record in production reflected the success in implementing the integrated work program in the various oilfields of the company.
The achievement, the ministry noted, was realized in spite of the serious challenges that accompanied the exceptional circumstances that were occasioned by the outbreak of the novel coronavirus (COVID-19).
The ministry described further this success as a major step on the right track to achieve the company’s goals of continuing to increase the crude output in the coming period.
Egypt’s increased production is however coming at a time when demand for crude oil in the international market has been depressed by economic crises currently gripping various developing and developed nations in the world.
The depressed demand has resulted in prices falling below the US$40 price for a barrel creating a revenue crisis for crude oil manufacturers who used to enjoy prices of US$70 before the start of the price war and COVID-19 pandemic.
In June, US government statistics revealed rising crude oil inventories in the North American country causing a 2% fall in the prices of crude oil.
To stabilize the price of the precious commodity, OPEC+ countries agreed to reduce their production by up to 2.2 million bpd, a factor which sent the price of crude oil up and beyond the US$40 mark.
Increased demand in the US also resulted in the US crude inventories falling by more than expected, dropping by 7.2 million barrels in the last week of July, after hitting all-time highs for three consecutive weeks.
This resulted in the prices of oil appreciating by 1% and further demand is expected to help boost the prices of the precious commodity that has been tumbling since the crisis started.