Global oil demand is growing healthily as economies recover from the pandemic and spare production capacity is declining, the CEO of Saudi Arabia’s state oil company Aramco said on Sunday.
Oil prices have surged to 14-year highs above $100 per barrel in recent weeks as Russia’s invasion of Ukraine prompted fears of supply disruptions, leading Western countries to urge producers such as Saudi Arabia to increase output.
“Global spare capacity is around 2 million barrels per day, which is not significant enough to deal with these geopolitical events and what is happening in the market,” Aramco CEO Amin Nasser said in a media call after the company reported bumper 2021 results.
