Why has Saudi Arabia ordered Aramco to halt its plan to raise oil production?
The move may be simply a cost-cutting strategy, or it could be driven by a new, less optimistic outlook from the world's largest crude producer on future oil demand.
Saudi Arabia has ordered state-owned energy giant Aramco to halt its plan to raise production capacity to 13 million barrels of oil per day and maintain its current 12 million bpd, the company said on Tuesday.
"Aramco announces that it has received a directive from the Ministry of Energy to maintain its maximum sustainable capacity … at 12 million barrels per day" instead of ramping it up to 13 million, the world's biggest producer of crude oil said in a statement.
"The company will update its capital spending guidance when its full-year 2023 results are announced in March,” it added.
