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Saudi Aramco Warn Risk of Limited Spare Capacity

OIL

Saudi Aramco warn that spare capacity is running low with the risk to supplies when China demand starts to recover.

  • “The world should be worried,” according to Saudi Aramco’s CEO Amin Nasser. “If China opens up a little bit you will find out that spare capacity will be eroded completely.”
  • He said the oil market is focusing on short-term rather than long-term economics and is not focusing on tight supply fundamentals. They argue the surge in oil and gas prices this year is evidence that more exploration projects are needed.
  • Spare capacity is only around 1.5% of total supply and it would take 30 days for Saudi Arabi to reach their current maximum capacity of 12mbpd.
  • Nasser said Aramco was on track to increase its capacity to 13mbpd by 2027 and is confident it can maintain its market share in Asia, where they send 60% of crude exports.
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Saudi Aramco warn that spare capacity is running low with the risk to supplies when China demand starts to recover.

  • “The world should be worried,” according to Saudi Aramco’s CEO Amin Nasser. “If China opens up a little bit you will find out that spare capacity will be eroded completely.”
  • He said the oil market is focusing on short-term rather than long-term economics and is not focusing on tight supply fundamentals. They argue the surge in oil and gas prices this year is evidence that more exploration projects are needed.
  • Spare capacity is only around 1.5% of total supply and it would take 30 days for Saudi Arabi to reach their current maximum capacity of 12mbpd.
  • Nasser said Aramco was on track to increase its capacity to 13mbpd by 2027 and is confident it can maintain its market share in Asia, where they send 60% of crude exports.