Saudi Arabia's Aramco halts plans to increase maximum oil production capacity
Publishing timestamp: 2024-01-30 02:52:21
Summary
Saudi Arabia's state-controlled Aramco has announced that it is pausing plans to raise its crude production capacity from 12 million barrels per day to 13 million barrels per day. The company did not disclose the reason behind this decision and will provide an update on its capital spending guidance in March. This announcement comes amid concerns over the outlook for oil demand worldwide and the global transition towards decarbonization. Saudi Arabia, as the leader of OPEC, has been advocating for a dual energy transition strategy that still utilizes oil and gas until renewable resources are sufficient to meet global demand. However, critics question this approach as self-serving for fossil fuel producers. This decision by Aramco reduces its ability to capture further market share at a time when the US is producing a significant volume of crude despite climate-focused policies.
Sentiment: NEUTRAL
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