Saudi Aramco said Tuesday that it would call off plans to expand its oil output, a remarkable turnaround by one of the world’s leading petroleum producers.
Aramco, the national oil company of Saudi Arabia, said it had been directed by the government in Riyadh to maintain its “maximum sustainable capacity” of crude oil production at 12 million barrels a day, and give up a drive to increase it to 13 million barrels a day by 2027, a plan announced several years ago.
But it could be a sign that the Saudis are changing their thinking about future supply and demand for their oil.
Global oil supplies have recently been stronger than the Saudis anticipated because of strong growth in output from shale drilling in the United States, which is now the world’s leading oil producer, and other sources.
“The decision probably reflects a view that the world does not need as much Saudi oil as was previously expected,” said Neil Beveridge, an analyst at Bernstein, a research firm.
Persons:
”, Neil Beveridge, Bernstein
Organizations:
Saudi Aramco, Aramco
Locations:
Saudi, Saudi Arabia, Riyadh, United States