Spare capacity amounts to 1.5 percent of global demand, said Amin Al-Nasser, President and CEO of Saudi Aramco, at an energy forum in London.
According to Al-Nasser, excess production capacity is not solely the responsibility of Saudi. He further stressed Aramco’s commitment to its Asian market despite European demand.
“The market is focusing on what will happen to demand if a recession happens in different parts of the world, they are not focusing on supply fundamentals,” Aramco’s chief added.
“The oil market is not focusing on the fact that global spare capacity to raise oil production is very low,” he said.
Given the lack of spare capacity, Al-Nasser believes Europe’s problem is with gas and liquefied natural gas.
OPEC + is set to meet in Vienna on Wednesday for the first time since March 2020, with expectations that the alliance will cut production by at least 500 thousand barrels per day, while some predict a reduction of more than one million barrels per day.
If a one-million-barrel-per-day production cut is approved, it will be the largest reduction since the start of the Covid-19 pandemic, reflecting the extent of concern about the slowing global economy.
