The world's largest oil producer, Saudi Aramco still sees a 'tight' global oil market amid the prospect of demand recovery from China.
The CEO of Saudi Aramco, Amin Nasser, said that spare oil production capacity is currently very low given that the world is still highly dependent on fossil fuels.
If China opens its borders and the economy starts to improve or the airline industry increases demand for more fuel, that spare capacity will be wiped out, he said.
As a result, he warned that oil prices could rise quickly again.
China, which is also the world's largest oil importer, has begun to ease its Covid-19 restrictions this month after strict control measures sparked public outrage.
China's leaders are now focusing on efforts to rebuild the country's economy, which has been battered by the ongoing shutdown.
This in turn strengthens expectations for a stronger fuel demand recovery from the world's major oil consumer in 2023.
