Aramco in unique position to ‘surge’ capacity to meet oil demand recovery

Aramco in unique position to ‘surge’ capacity to meet oil demand recovery

DUBAI: Saudi Aramco is uniquely positioned to respond to a surge in global oil demand according to a report from Bank of America Merrill Lynch. "At maximum sustainable capacity of 12 million barrels per day (bpd) and proven ability to produce even more, Aramco is one of the few companies globally that can substantially boost output without committing additional capex," the bank said on Sunday. "We believe that Aramco is uniquely positioned in the global oil world to meet potential resurgence of oil demand. After the collapse of oil prices in 2020 linked to the COVID-19 pandemic, the market has staged a strong recovery so far this year with a number of banks raising their price estimates for the full year. Oil prices jumped about 3 percent on Friday, to reach their highest in more than a year after OPEC and its allies decided not to increase supply in April. Brent crude was up by about 4 percent over the week while WTI oil gained 7 percent. The rapidly improving outlook for the sector has also sweetened the dividend out look for the company if the oil price remains within the $60 to $75 per barrel range, the bank said.