DOHA, Oct 5 – PRIME. The increase in oil production is complicated by the lack of spare production capacity, which is only 1.5% of global demand, said Amin Nasser, CEO of the Saudi state oil and gas company Aramco, whose words are quoted by Al Arabiya TV channel.
“The presence of additional production capacity is not the responsibility of Saudi Arabia alone, free capacity is 1.5% of world demand. The oil market does not focus on the fact that the capacity to increase oil production in the world is very small, it is only focused on what will happen with demand in the event of a recession in different parts of the world, and not on supply fundamentals,” he said.
The head of Aramco expressed confidence in the company’s ability to maintain its market in Asia, despite increased demand in Europe, since the Asian market accounts for 60% of its energy supplies, noting that he sees no opportunity for competition from Russian oil in Asia.
Later Wednesday, OPEC+ members are due to hold their first face-to-face meeting in Vienna since March 2020, amid expectations that the alliance will cut production by at least 500,000 barrels per day, a figure that could even reach 1 million barrels.
If meeting participants from oil-producing countries approve a 1 million barrel per day cut in oil production, this will be the largest cut and will reflect the degree of concern of these countries about the slowdown in the global economy.