Saudi Arabia Drops Plan to Increase Crude Capacity

Saudi Arabia’s Energy Ministry has told Saudi Aramco to maintain its maximum crude capacity at 12mbpd not to increase its capacity to 13mbpd by 2027, as previously planned, according to S&P Commodity Insights.

• Plans to increase capacity were first announced by the energy ministry in 2019.
• Saudi Aramco holds the exclusive concession to produce within the kingdom’s borders. Under the concession it was the government’s decision to raise the maximum sustained capacity and production target, Aramco CEO Amin Nasser said last year.
• "So this is always in the hand of the government. The government can tell you to increase, can tell you whatever'' through the Ministry of Energy, he said. "They will decide the maximum sustained capacity and they will decide the production target," Nasser said.
• “It’s the clearest sign yet that the kingdom is moderating its expectations of global oil demand growth in the coming years,” said Vandana Hari, founder of Vanda Insights.