According to Saudi Aramco, spare capacity in the oil market will drop dramatically next year as travel recovers amid a lack of investment among producers.
Surplus supplies are equivalent to 3 million to 4 million barrels per day, but are expected to decrease as demand for jet fuel rises, according to Chief Executive Officer Amin Nasser.
"The buffer might be diminishing, especially next year," he said during the Nikkei Global Management Forum.
Airline fuel is one of the few oil products whose demand is still significantly down since the outbreak of the coronavirus pandemic. According to the International Energy Agency, daily use of jet fuel and kerosene is around 5.5 million barrels, down from over 8 million in 2019.
According to Nasser, overall oil consumption will surpass 100 million barrels per day in 2022. That would bring it near record levels.
He said that dwindling spare capacity is exacerbated by the fact that too few oil companies are attempting to increase output capacity.