Saudi Arabia abandoned plans to increase oil production capacity

Saudi oil company Saudi Aramco reported on the order of the country’s Ministry of Energy to maintain the maximum retained oil production capacity at 12 million barrels per day. This means that the country’s authorities have abandoned their previously announced multibillion-dollar plan to increase maximum retained oil production capacity to 13 million barrels per day by 2027.

With this project, the world’s largest oil producer (Saudi Aramco accounts for about 10% of all global oil production) differed from most competitors, which have recently cut oil production costs due to uncertainty about oil demand and several other factors, including environmental ones.

The company did not indicate the reasons for abandoning the project, only noting that the maximum retained oil production capacity is set by the country’s government. No one in the government has yet commented on the decision.

How the conflict in the Middle East will affect the supply of raw materials – in the Kommersant FM article “Iran will boost the oil market”.

Andrey Kelekeev