Saudi Won’t Boost Oil Production Capacity: Here’s Why

Since Saudi Arabia’s announcement that it is scrapping plans to expand its oil production capacity by 1 million barrels per day (bpd), speculation has flourished about the reasons behind the decision. First, analysts speculate that the outlook on long-term oil demand has come into question.    Next, investment banks suggest that supply growth from producers outside the OPEC+ agreement has surprised the market in the past two years, and the world’s top crude oil exporter, Saudi Arabia, may have recognized that it faces a problem…