Amin Al-Nasser, President and CEO of Saudi Aramco, said during an energy forum in London on Tuesday that the oil market is not focused on the fact that the global excess production capacity to increase oil production is too much. low.
He added: “The market is focused on what will happen to demand if there is a recession in different parts of the world, it is not focusing on supply fundamentals.”
He added that spare capacity amounts to 1.5% of global demand and that having excess production capacity is not just Saudi Arabia’s responsibility.
Aramco’s CEO stressed his confidence in the company’s ability to maintain its market in Asia despite European demand, as the Asian market accounts for 60% of its shipments. Pointing out that he no longer sees competition for Russian oil in Asia.
He also stressed that Europe’s problem lies precisely here Gas and liquefied gas due to lack of spare capacity. He added that European refineries are shunning Russian oil, forcing Moscow to take advantage of alternative markets in Asia, particularly China and India.
Tomorrow, Wednesday, the OPEC + alliance will hold its first in-person meeting in Vienna, from March 2020, amid expectations that the alliance will tend to reduce production by at least 500,000 barrels per day, while some expectations point to the possibility of reducing of over one million barrels per day.
If a production cut of one million barrels per day is approved, it will be the largest reduction since the start of the Corona pandemic and will reflect the extent of concern about the global economic slowdown.
