Saudi Aramco Chief Executive Amin Nasser on Tuesday said that spare capacity in the oil market stands at 1.5% of global demand, adding that providing a buffer of spare capacity was not the responsibility of Saudi Arabia alone.
"(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," Nasser said at the Energy Intelligence Forum in London.
He stressed that the oil market is not focusing on the fact that global spare capacity to raise oil production is very low.
Nasser pointed out that given the lack of spare capacity, Europe's problem lies in gas and liquefied natural gas.
On Wednesday, the OPEC + alliance will hold its first in-person meeting in Vienna, since March of 2020, amid expectations the alliance tends to reduce oil production by at least 500 thousand barrels per day. Other expectations said it could even touch a one million bpd.
Should a decision settle on a one million barrel cut, it would be the largest reduction since the onset of the COVID-19 pandemic thus reflecting the grave concern about the slowing global economy.
