Saudi Aramco has spare capacity of 2 million barrels per day (bpd) and can meet additional oil demand in case of any interruption in supplies, the company’s chief executive said on Monday, days after OPEC agreed on a modest increase in oil output from July.
Speaking on the sidelines of a conference in New Delhi, Aramco CEO Amin Nasser said that the company is currently producing about 10 million bpd and has the capacity to produce 12 million bpd.
The Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and non-OPEC producers including Russia agreed over the last few days on a modest increase in oil production from July, following calls from major consumers to curb rising fuel costs.
“We have a healthy spare capacity ... that will be availed to meet additional demand and any interruptions in supply if it happens,” Nasser was quoted as saying by Reuters.
Nasser expected OPEC’s decision to be implemented “very soon”, although he did not comment on Aramco’s likely output for the July-August period.
“Whatever is concluded as part of this agreement, we will fulfill,” he added.
OPEC and it’s non-OPEC allies met last week to review a pact to cut their combined output by 1.8 million bpd that was put into place at the beginning of 2017.
Saudi Energy Minister Khalid al-Falih said at the weekend OPEC and non-OPEC combined would pump roughly an extra 1 million bpd in coming months, equal to 1 percent of global supply.
Global consumers have grown increasingly worried over the past few months about oil supplies, with the United States vowing to renew sanctions against Iran, and Venezuela seeing a big drop in its output due to US sanctions and an economic crisis.