Aramco to maintain oil production at 12 million bpd

Saudi Aramco, the world's largest oil-producing company, announced on Tuesday that it has received directives from the Ministry of Energy to maintain its maximum sustainable capacity (MSC) at 12 million barrels per day. This directive puts a hold on previous plans to increase production to 13 million barrels.

The determination of MSC, as outlined in the press release, is a responsibility of the state under the Hydrocarbons Law, which was enacted by Royal Decree M/37 on December 20, 2017. This law provides the framework for Saudi Arabia's oil production strategies and capacity decisions.

Aramco also indicated that it would provide an update on its capital spending guidance when it announces its full-year 2023 results in March. This update is eagerly anticipated by investors and market analysts, as it will provide insights into the company's strategic planning and investment priorities in light of the current market conditions and the ongoing energy transition.