Saudi Aramco, the world's largest oil company, has announced that it will not pursue an increase in its maximum daily oil production to 13 million barrels a day. The decision comes in response to an order from the country's Energy Ministry and is aimed at maintaining its current maximum output of 12 million barrels a day. Although the company did not provide a specific reason for this decision, it is speculated that the soft demand in the global crude oil market and falling prices could have influenced their choice.
In recent months, crude oil prices have experienced a decline due to a combination of factors, including a slowdown in the global economy and a decrease in demand for oil. Benchmark Brent crude, a widely used price indicator, was trading at around $81 per barrel on Tuesday. This price level, which is significantly lower than previous years, poses challenges for oil producers who rely on higher prices to sustain profitability.
