Saudi Arabia’s $2 billion Ras Tanura clean fuels project has been suspended by Saudi Aramco following a steep drop in oil’s price since July 2014, Reem Shamseddine of Reuters reports.
The Ras Tanura clean fuels project was due to be a part of a second phase of upgrades to Aramco’s refineries, but may resume in a year, according to the report. The report also noted that, “Aramco was evaluating its projects following the fall in oil prices to determine which should have priority. Aramco’s Chief Executive, Khalid al-Falih, said in November that the cyclical moves of oil markets would not take Saudi Aramco’s long-term corporate strategy off track.”
The steep drop in oil’s price on international exchanges has roiled oil producers around the globe, but Saudi Arabia has continued without production cuts as it seeks to retain market share. The Saudi government announced its 2015 budget late last month that kept spending at high rates, a signal to the private sector and international observers that the Kingdom would continue to stimulate its economy by running a deficit in 2015 and drawing on reservers.
