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Saudi Aramco CEO Warns of Shortage in Global Oil Supply

Inspenet, January 19, 2023

The executive director of the Saudi Aramco oil company, Amin Nasser, warns of the shortage of world oil supply in the future due to the reactivation of the Chinese economy and the recovery of the aviation sector.

“In the case of crude oil, we are in a situation where there is a surplus available which is helping to mitigate disruptions [de abastecimiento]”, Nasser told CNBC. “However, I am not so sure in the medium and long term […]”, he added, basing himself that as the reserve capacity is reduced, they will not have the capacity to mitigate the cuts in the future, as happened with the crisis between Russia and Ukraine.

According to Nasser, there is currently excess capacity of close to two million barrels of oil. The aviation industry consumes one million barrels below the pre-pandemic level of covid-19. Therefore, once this sector recovers in 2023-2024, it will require an additional million barrels and, considering the reactivation of China, the demand for fuel will increase.

According to a report by the International Energy Agency, world demand for oil will increase by 1.9 million barrels per day in 2023, reaching a record of 101.7 million barrels per day and almost half will come from China.

In this sense, he maintained that the current market dynamics remain moderate, but that will change and the world will not be able to face that change in the future.

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