Oil prices fall as Aramco signals plan to raise crude production

Oil prices further dropped on Monday following Saudi Aramco’s readiness to increase production, dismal economic recovery in China,  and the likelihood of more Iranian supply. 

Oil prices slipped in Asian trade, with both main contracts down around two percent as the stuttering Chinese economic recovery added to concerns about demand. 

Weighing further on the oil price is Aramco’s likely enhancement of its output.  

“We are confident of our ability to ramp up to 12 million barrels per day (bpd) any time there is a need or a call from the government or from the ministry of energy to increase our production,” Aramco CEO Amin Nasser said, quoted by Reuters.  

The hopes of an imminent nuclear deal with Iran is expected to bring more supply to oil market. The European Union’s suggestions to save the nuclear agreement, according to Iran’s state-run IRNA, are acceptable if Tehran can be reassured on matters such as sanctions. 

Crude prices which had gained following Russia’s invasion of Ukraine have declined over the last couple of months on fears of a possible economic recession. Overall, oil  has gained 23 percent this year.