Saudi Arabia, the world's largest oil exporter, admits it has reached its production ceiling

Added  to the high prices we pay for fuel is  an inescapable fact: oil is finished. For now,  Saudi Arabia, the world's largest crude oil exporter, has acknowledged  that it will not have additional capacity to increase production  to the targets it has set, and has predicted "unprecedented inflation".

And Russian oil exports,  which supply EU countries , fell to the lowest level since August 2021.

Few forecasts of lower fuel prices

Saudi Crown Prince Mohammed bin Salman  shared  his country's production capacity cap at the Gulf Cooperation Council summit.

Specifically, he announced that the absolutist monarchy would have no additional capacity to increase production above the 13 million barrels per day it promised to have by 2027.

Meanwhile,  the United States is pressuring the kingdom to increase its production capacity  and balance the market.

The Saudi Crown Prince also criticized "the adoption of unrealistic emission reduction policies by excluding major energy sources without considering the social and economic impact resulting from these policies".

Additionally, he predicted a few complicated years ahead :

"The pillars of sustainable development and global supply chains will lead in the years to come to unprecedented inflation, rising energy prices, rising unemployment and exacerbating serious social and security problems, including increased poverty and starvation and rates of crime, extremism and terrorism.

Meanwhile, the International Energy Agency  estimates  that increased power generation and a recovery in China will offset a slight drop in oil demand.

A drop caused in part by the  sharp rise in fuel prices.

Greater crude oil production, which is already taking place in the United States and Canada, will also help balance the scales.

For now, the deteriorating economic outlook has fueled a selloff in the crude oil futures market, keeping Brent and WTI barrels around the $100 mark.

The weakening of the dollar, but especially the euro, as well as weak OPEC production could keep fuel prices high throughout 2022.