WTI - Aramco Halts Plan To Increase Maximum Crude Production Capacity Amid Oil Demand Uncertainty | Benzinga
In a development that could have wider implications for the oil market, Saudi Arabia's state-owned Aramco has suspended its plan to boost its maximum crude production capacity. The decision comes against the backdrop of a shifting global landscape, with increasing concerns about the future of oil demand.
What Happened: On Tuesday, Aramco announced its decision to halt plans to increase crude production capacity from 12 million barrels per day to 13 million barrels per day, as per a CNBC report. The decision marks a significant shift from the directive received years ago and after billions of dollars invested to boost production capacity by 2027.
The announcement coincides with growing concerns about the global oil demand outlook, especially with the global shift towards decarbonization. The International Energy Agency (IEA) projected an increase in global oil demand by 2.3 million barrels per day in 2023 to 101.7 million barrels per day in its December annual report but also acknowledged a weakening macroeconomic climate.
The Saudi Ministry of Energy instructed Aramco to keep its Maximum Sustainable Capacity (MSC) at current levels. The ...