Saudi Oil Capacity U-Turn Shows Threat From Rival Supply
- Market watchers say decision reflects doubts on demand growth
- Resurgence in shale oil also seen as factor in Riyadh’s shift
Saudi Arabia will probably post a budget shortfall of about 4.3% of gross domestic product in 2024 and have more than $46 billion of funding requirements.
Photographer: Maya Sidiqqui/BloombergThis article is for subscribers only.
Saudi Arabia’s reversal of plans to bolster its oil production capacity has raised questions about the future of demand, but it points to another long-running risk to the kingdom’s energy petroleum revenue — rival suppliers.
State-run Saudi Aramco surprised the oil industry on Tuesday by announcing it won’t proceed with plans to bolster production capacity about 8% to 13 million barrels a day by 2027.