Aramco CEO: Saudi Arabia alone not responsible for having ‎excess production capacity ‎

Amin Al-Nasser, CEO of the giant Saudi oil company Aramco, said at the Intelligence Energy Forum in London today, Tuesday, that the oil market does not focus on the fact that the global spare capacity to increase oil production is very low, indicating that having excess production capacity is not the responsibility of Saudi Arabia alone noting that Europe’s problem lies in gas and liquefied gas due to the lack of spare capacity

Al-Nasser said: “The market is focused on what will happen to demand if there is a recession in different parts of the world, as it does not focus on the fundamentals of supply,” estimating the surplus capacity at 1.5% of global demand.

He added, “We believe that the demand for oil will grow until 2030 and beyond – spare capacity represents about 1.5% of the total supply.”

He continued, “(The market) is focused on what will happen to demand if there is a recession in different parts of the world, they do not focus on the foundations of supply.”

Tomorrow, Wednesday, the OPEC + alliance will hold its first meeting in Vienna, since March of the year 2020, amid expectations that the alliance is heading to reduce production by at least 500,000 barrels per day, while some expectations indicate the possibility of reducing by more than one million barrels per day.

In the event that a production cut of one million barrels per day is approved, it will be the largest reduction since the start of the Corona pandemic, and it will reflect the extent of concern about the slowing global economy.