عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Energy Minister: Ready to Raise or Lower Production at Any Time, Whatever Market Dictates 

Saudi Energy Minister Prince Abdulaziz bin Salman. (Reuters)
Saudi Energy Minister Prince Abdulaziz bin Salman. (Reuters)
TT
TT

Saudi Energy Minister: Ready to Raise or Lower Production at Any Time, Whatever Market Dictates 

Saudi Energy Minister Prince Abdulaziz bin Salman. (Reuters)
Saudi Energy Minister Prince Abdulaziz bin Salman. (Reuters)

Saudi Minister of Energy Prince Abdulaziz bin Salman confirmed the Kingdom's readiness to raise or lower oil production at any time, according to market requirements.  

Speaking at the International Petroleum Technology Conference (IPTC), Prince Abdulaziz said the decision to halt Aramco's oil expansion plans was due to the transformation in energy.  

The Minister said the Kingdom had a "huge cushion" of spare oil capacity in case of significant disruptions to global supplies caused by conflict or natural disasters.  

He also confirmed that the OPEC+ alliance is ready to amend its oil production policy at any time, noting that OPEC's data on production is accurate.  

OPEC figures show oil demand reached a record of more than 102 million barrels per day (bpd) last year.  

"We are ready to tweak upward, downward, whatever the market necessity dictates," Prince Abdulaziz said, underlining that OPEC's mission is to be attentive to any market movement.  

He stressed that Saudi Arabia respects OPEC's decisions regarding oil stability in global markets, asserting the Kingdom's commitment to the organization's decisions.  

The Saudi Minister stressed that achieving energy security is the responsibility of all OPEC nations and oil-producing countries, not just Saudi Arabia's.  

Saudi Arabia has plenty of spare capacity to cushion the oil market.  

Last month, Saudi Arabia, the largest oil exporting country in the world, made a surprise announcement to reduce its oil expansion plans and indicated that it is targeting a maximum sustained production capacity of 12 million bpd.  

"I think we postponed this investment simply because ... we're transitioning," Prince Abdulaziz said, adding that Aramco has other investments in areas including oil, gas, petrochemicals, and renewables.  

The minister noted that the decision was not made hastily and was the product of a continuous review of market conditions.  

"We are in [a] continuous mode of reviewing and reviewing and reviewing, simply because you have to view the realities [of the market]," he said.  

He explained that maintaining the maximum sustained production capacity of 12 million bpd is due to the transitioning process.  

Prince Abdulaziz said Saudi Arabia will become the country that exploits all energy resources, announcing that the Kingdom is currently working on issuing tenders for about 30 gigawatts of solar energy. 

"Because we are transitioning, we will save approximately 950k-1mn b/d of consumed crude, diesel, and fuel oil... simply because we are transitioning to renewables and gas."  

He added: "We respect OPEC's decisions regarding oil stability in global markets," noting that Saudi Arabia will become the country exploiting all global energy resources.  

Meanwhile, Saudi Aramco CEO Amin Nasser expected oil demand to increase to 104 million bpd this year and 105 million bpd in 2025, downplaying suggestions that it will peak soon.  

During his participation at the IPTC, Nasser said energy consumption in 2025 will change completely, depending on supply and demand.  

Aramco is fulfilling its promises to save energy and is looking to increase its capacity and daily production.  

He added that Aramco is seeking to search for more sources and investors in hydrogen, gas, oil, and all energy sources, focusing on the primary mission, which is continuity of production and growth in gas, oil, and all energy sources.  

Moreover, Nasser predicted development in all energy fields, such as hydrogen or gas, and highlighted the significant advancements in solar energy.  

Aramco intends to invest in modern technologies and energy, he said, adding that Saudi Arabia is working to increase renewable energy production, support hydrogen, and provide and store energy.  

Nasser announced that Aramco is looking for skills, innovation, and the ability to develop, revealing that the company may establish technical companies and profit-making institutions in various industries.  

Saudi Arabia is hosting the International Petroleum Technology Conference (IPTC) at Dhahran Expo between February 12 and 14, with the participation of over 250 international companies. 

Most Viewed

 
 
Business

Al-Rumayyan: PIF Investments in Local Content Exceed $157 Billion

Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)
Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)
TT
TT

Al-Rumayyan: PIF Investments in Local Content Exceed $157 Billion

Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)
Yasir Al-Rumayyan speaks to the audience in the opening speech of the Public Investment Fund Private Sector Forum (Asharq Al-Awsat)

Yasir Al-Rumayyan, governor of Saudi Arabia’s Public Investment Fund (PIF), announced that spending by the sovereign fund’s programs, initiatives, and companies on local content reached 591 billion riyals ($157 billion) between 2020 and 2024.

He added that the fund’s private sector platform has created more than 190 investment opportunities worth over 40 billion riyals ($10 billion).

Speaking at the opening of the PIF Private Sector Forum on Monday in Riyadh, Al-Rumayyan said the fund is working closely with the private sector to deepen the impact of previous achievements and build an integrated economic system that drives sustainable growth through a comprehensive investment cycle methodology.

He described the forum as the largest platform of its kind for seizing partnership and collaboration opportunities with the private sector, highlighting the fund’s success in turning discussions into tangible projects.

Since 2023, the forum has attracted 25,000 participants from both public and private sectors and has witnessed the signing of over 140 agreements worth more than 15 billion riyals, he pointed out.

Al-Rumayyan emphasized that the meeting comes at a pivotal stage of the Kingdom’s economy, where competitiveness will reach higher levels, sectors and value chains will mature, and ambitions will be raised.

PIF Private Sector Forum aims to support the fund’s strategic initiative to engage the private sector, showcase commercial opportunities across PIF and its portfolio companies, highlight potential prospects for investors and suppliers, and enhance cooperation to strengthen the local economy.

Business

Pakistan’s Finance Minister to Asharq Al-Awsat: We Draw Inspiration from Saudi Arabia

The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
TT
TT

Pakistan’s Finance Minister to Asharq Al-Awsat: We Draw Inspiration from Saudi Arabia

The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)

Pakistani Finance Minister Muhammad Aurangzeb discussed the future of his country, which has frequently experienced a boom-and-bust cycle, saying Pakistan has relied on International Monetary Fund (IMF) programs due to the absence of structural reforms.

In an interview with Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb acknowledged that Pakistan has relied on IMF programs 24 times not as a coincidence, but rather as a result of the absence of structural reforms and follow-up.

He stressed the government has decided to "double its efforts" to stay on the reform path, no matter the challenges, affirming that Islamabad not only has a reform roadmap, but also draws inspiration from "Saudi Vision 2030" as a unique model of discipline and turning plans into reality.

Revolution of Numbers

Aurangzeb reviewed the dramatic transformation in macroeconomic indicators. After foreign exchange reserves covered only two weeks of imports, current policies have succeeded in raising them to two and a half months.

He also pointed out to the government's success in curbing inflation, which has fallen from a peak of 38 percent to 10.5 percent, while reducing the fiscal deficit to 5 percent after being around 8 percent.

Aurangzeb commented on the "financial stability" principle put forward by his Saudi counterpart, Mohammed Aljadaan, considering it the cornerstone that enabled Pakistan to regain its lost fiscal space.

He explained that the success in achieving primary surpluses and reducing the deficit was not merely academic figures, but rather transformed into solid "financial buffers" that saved the country.

The minister cited the vast difference in dealing with disasters. While Islamabad had to launch an urgent international appeal for assistance during the 2022 floods, the "fiscal space" and buffers it recently built enabled it to deal with wider climate disasters by relying on its own resources, without having to search "haphazardly" for urgent external aid, proving that macroeconomic stability is the first shield to protect economic sovereignty.

Privatization and Breaking the Stalemate of State-Owned Enterprises

Aurangzeb affirmed that the Pakistani Prime Minister adopts a clear vision that "the private sector is what leads the state."

He revealed the handover of 24 government institutions to the privatization committee, noting that the successful privatization of Pakistan International Airlines in December provided a "momentum" for the privatization of other firms.

Aurangzeb also revealed radical reforms in the tax system to raise it from 10 percent to 12 percent of GDP, with the adoption of a customs tariff system that reduces local protection to make Pakistani industry more competitive globally, in parallel with reducing the size of the federal government.

Partnership with Riyadh

As for the relationship with Saudi Arabia, Aurangzeb outlined the features of a historic transformation, stressing that Pakistan wants to move from "aid and loans" to "trade and investment."

He expressed his great admiration for "Vision 2030," not only as an ambition, but as a model that achieved its targets ahead of schedule.

He revealed a formal Pakistani request to benefit from Saudi "technical knowledge and administrative expertise" in implementing economic transformations, stressing that his country's need for this executive discipline and the Kingdom's ability to manage major transformations is no less important than the need for direct financing, to ensure the building of a resilient economy led by exports, not debts.

Business

Oil Drops 1% as US, Iran Pledge to Continue Talks

The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
TT
TT

Oil Drops 1% as US, Iran Pledge to Continue Talks

The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)

Oil prices fell 1% on Monday as immediate fears of a conflict in the Middle East eased after the US and Iran pledged to continue talks about Tehran's nuclear program over the weekend, calming investors anxious about supply disruptions.

Brent crude futures fell 67 cents, or 1%, to $67.38 a barrel on Monday by 0444 GMT, while US West Texas Intermediate crude was at $62.94 a barrel, down 61 cents, or 1%.

"With more talks on the horizon the immediate ‌fear of supply disruptions ‌in the Middle East has eased ‌quite ⁠a bit," IG ‌market analyst Tony Sycamore said.

Iran and the US pledged to continue the indirect nuclear talks following what both sides described as positive discussions on Friday in Oman despite differences. That allayed fears that failure to reach a deal might nudge the Middle East closer to war, as the US has positioned more military forces in the area.

Investors are also worried about possible disruptions to supply ⁠from Iran and other regional producers as exports equal to about a fifth of the world's ‌total oil consumption pass through the Strait of ‍Hormuz between Oman and Iran.

Both ‍benchmarks fell more than 2% last week on the easing tensions, their ‍first decline in seven weeks.

However, Iran's foreign minister said on Saturday Tehran will strike US bases in the Middle East if it is attacked by US forces, showing the threat of conflict is still alive.

"Volatility remains elevated as conflicting rhetoric persists. Any negative headlines could quickly reignite risk premiums in oil prices this week," said Priyanka Sachdeva, senior market analyst at ⁠Phillip Nova.

Investors are also continuing to grapple with efforts to curb Russian income from its oil exports for its war in Ukraine. The European Commission on Friday proposed a sweeping ban on any services that support Russia's seaborne crude oil exports.

Refiners in India, once the biggest buyer of Russia's seaborne crude, are avoiding purchases for delivery in April and are expected to stay away from such trades for longer, refining and trade sources said, which could help New Delhi seal a trade pact with Washington.

"Oil markets will remain sensitive to how broadly this pivot away from Russian crude unfolds, whether ‌India’s reduced purchases persist beyond April, and how quickly alternative flows can be brought online," Sachdeva said.