On Tuesday, the CEO of Saudi Aramco Amin Nasser expressed his concern that the return of jet demand would diminish the oil spare capacity that has been providing security at some level to the global oil market.
The current industry spare capacity is between 3 to 4 million bpd. However, when there would be a pick up in jet fuel demand especially in 2022, the buffer might diminish.
At the moment, jet fuel demand was still weaker by around 3 million bpd compared to 2019’s 7.5 million bpd.
On a related note, Nasser said that by 2027, Saudi Arabia plans to expand its crude output by 1 million bpd to 13 million bpd. He cited the lack of investment in the world to raise capacity as a huge concern.
He predicted that the global oil demand would exceed 100 million bpd next year.
