Aramco: Oil Spare Capacity to Decrease with Return of Jet Demand

A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. (Reuters)
A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. (Reuters)
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Aramco: Oil Spare Capacity to Decrease with Return of Jet Demand

A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. (Reuters)
A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. (Reuters)

Saudi Aramco CEO Amin Nasser said on Tuesday that the spare oil production capacity worldwide could be reduced next year with the return of air travel, ending an important safety cushion in the market at the present time.

In remarks at the Nikkei Global Management Forum, Nasser estimated that global oil demand would surpass pre-pandemic levels of some 100 million barrels per day next year. He explained that jet fuel demand remains about 3 million-4 million b/d below where it was before the pandemic, and a recovery in air travel would quickly consume the world’s spare production capacity.

Spare production capacity is an important safety factor for the oil market, as it allows producers to respond quickly to unscheduled supply shortages in the market, which can cause price fluctuations.

Nasser reiterated that Saudi Arabia, the world’s largest oil exporter, intends to increase its maximum sustainable production capacity by 1 million barrels per day to 13 million barrels per day by 2027.

“Increasing the (production) capacity in our industry takes about 5-7 years, and there is not enough investment in the world to increase it. This is a major concern,” he noted.

Meanwhile, oil prices rose to nearly USD84 a barrel during trading on Tuesday, achieving gains for the third consecutive session, with the lifting of the US travel restrictions and other signs of economic recovery.

Brent crude was up USD1.35, or 1.6%, USD 84.78 per barrel, after gaining 0.8% on Monday. US oil advanced USD2.22, or 2.7%, to USD 84.15 per barrel also after a 0.8% rise the previous day.

JPMorgan Chase said that global oil demand in November almost returned to its pre-pandemic levels at one hundred million barrels per day. Despite a tight global market, US crude inventories are expected to have risen for a third consecutive week, possibly helping to curb the rise in prices.



Saudi Energy Minister, China’s NDRC Chairman Co-chair Fifth Belt and Road, Major Projects and Energy Subcommittee Meeting

Discussions covered cooperation across the energy, investment and industry - SPA
Discussions covered cooperation across the energy, investment and industry - SPA
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Saudi Energy Minister, China’s NDRC Chairman Co-chair Fifth Belt and Road, Major Projects and Energy Subcommittee Meeting

Discussions covered cooperation across the energy, investment and industry - SPA
Discussions covered cooperation across the energy, investment and industry - SPA

The fifth meeting of the Belt and Road, Major Projects and Energy Subcommittee of the Saudi–Chinese High-Level Joint Committee convened via videoconference under the co-chairmanship of Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz and Chairman of the National Development and Reform Commission (NDRC) of the People’s Republic of China Zheng Shanjie.

The meeting reaffirms both sides’ commitment to further advancing the strategic partnership between the two countries. The two sides reviewed progress in bilateral relations and discussed ways to strengthen cooperation in priority sectors, SPA reported.

They also highlighted opportunities under Saudi Vision 2030 and China’s Belt and Road Initiative to expand cooperation and achieve mutual benefits.

Discussions covered cooperation across the energy, investment, industry, minerals, space, water, transport, and major projects sectors.
The two sides agreed to continue coordination on topics of mutual interest, enhance alignment of development strategies and concrete cooperation, and identify priorities for future cooperation.

The subcommittee serves as a key bilateral mechanism for advancing cooperation between Saudi Arabia and China and supporting projects and initiatives of mutual interest aligned with Saudi Vision 2030 and China’s Belt and Road Initiative.


Russian Central Bank Cuts Key Rate to 15.5%, Signals More Cuts to Come

People walk along the Zaryadye Floating Bridge on a cold winter day, with the Kremlin in the background, in Moscow, Russia February 5, 2026. REUTERS/Anastasia Barashkova
People walk along the Zaryadye Floating Bridge on a cold winter day, with the Kremlin in the background, in Moscow, Russia February 5, 2026. REUTERS/Anastasia Barashkova
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Russian Central Bank Cuts Key Rate to 15.5%, Signals More Cuts to Come

People walk along the Zaryadye Floating Bridge on a cold winter day, with the Kremlin in the background, in Moscow, Russia February 5, 2026. REUTERS/Anastasia Barashkova
People walk along the Zaryadye Floating Bridge on a cold winter day, with the Kremlin in the background, in Moscow, Russia February 5, 2026. REUTERS/Anastasia Barashkova

Russia's central bank cut its key interest rate by 50 basis points to 15.5% on Friday and signaled that rates could fall further in a bid to shore up the slowing wartime economy, which is struggling with high borrowing costs.

Of ‌the 24 ‌analysts surveyed by Reuters ahead of ‌the decision, ⁠just eight out ⁠of 24 had predicted a 50-basis-point cut.

"The Bank of Russia will assess the need for a further key rate cut at its upcoming meetings depending on the sustainability of the inflation slowdown and the dynamics of inflation expectations," the bank said.

"The baseline scenario assumes the average key ⁠rate to be in the range from ‌13.5% to 14.5% per annum ‌in 2026," it said.

Russia's economy, which showed significant resilience ‌to Western sanctions over the course of the first ‌three years of the conflict in Ukraine, slowed down sharply last year after the central bank hiked the key rate to fight inflation.

Russia's government forecasts growth of 1.3% this year, after 1.0% ‌in 2025. The central bank sees growth at 0.5-1.5% this year.

The central bank forecast ⁠annual inflation ⁠would decline to 4.5–5.5% in 2026, but cautioned about the rise in prices in January.

Prices have risen by 2.1% since the start of the year, reaching 6.5% on an annual basis, as a result of an increase in value-added tax (VAT), which the government introduced to ensure that the budget was balanced.

"Higher VAT and excise taxes, the indexation of administered prices and tariffs, and price adjustments for fruit and vegetables led to a temporary but considerable acceleration of the current price growth in January," the bank said.


Africa Leads Growth in Solar Energy as Demand Spreads Beyond Traditional Markets, Report Says 

Solar panels are seen on the roof of a company in Nairobi, Kenya, on Sept. 1, 2023. (AP)
Solar panels are seen on the roof of a company in Nairobi, Kenya, on Sept. 1, 2023. (AP)
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Africa Leads Growth in Solar Energy as Demand Spreads Beyond Traditional Markets, Report Says 

Solar panels are seen on the roof of a company in Nairobi, Kenya, on Sept. 1, 2023. (AP)
Solar panels are seen on the roof of a company in Nairobi, Kenya, on Sept. 1, 2023. (AP)

Africa was the world’s fastest-growing solar market in 2025, defying a global slowdown and reshaping where the momentum in renewable energy is concentrated, according to an industry report released in late last month.

The report by the Africa Solar Industry Association says the continent's solar installed capacity expanded 17% in 2025, boosted by imports of Chinese-made solar panels. Global solar power capacity rose 23% in 2025 to 618 GW, slowing from a 44% increase in 2024.

“Chinese companies are the main drivers in Africa’s green transition,” said Cynthia Angweya-Muhati, acting CEO of the Kenya Renewable Energy Association. “They are aggressively investing in and building robust supply chains in Africa green energy ecosystem.”

Some of that capacity has yet to be rolled out. Africa has only 23.4 gigawatts peak (GWp) of working solar capacity even though nearly 64 GWp of solar equipment has been shipped to the continent since 2017. A gigawatt peak represents 1 billion watts of maximum, optimum power output under ideal conditions.

“Africa's growth is driven by changing policies and enabling conditions in a number of countries,” said John Van Zuylen, CEO of the Africa Solar Industry Association.

“Solar energy has moved beyond a handful of early adopters to become a broader continental priority,” he said recently on the sidelines of the Inter Solar Africa summit in Nairobi. “What we are seeing is not temporary. It is policies aligning with market dynamics.”

Historically, South Africa dominated solar imports in Africa, at one point accounting for roughly half of all panels shipped to the continent. The latest data show its share has slipped below a third as demand surged elsewhere. Last year, 20 African nations set new annual records for solar imports, as 25 countries imported a total of at least 100 megawatts of capacity.

Nigeria has overtaken Egypt as Africa's second-largest importer as solar energy and battery storage provide a practical and affordable alternative to diesel generators and unreliable grid power. In Algeria, solar imports soared more than 30-fold year-on-year. Imports also surged in Zambia and Botswana.

At least 23 African countries, including South Africa, Tunisia, Kenya, Chad and the Central African Republic, are now generating over 5% of their electricity from solar energy, the report said.

Prices have fallen both for solar panels and batteries, mostly from China, enabling households and businesses to rely on solar plus batteries for round-the-clock electricity, the report said. Battery storage costs in Africa fell to $112 per kilowatt-hour in 2025 from an average of $144 per kilowatt-hour in 2023 as improved technology made storage systems more flexible and longer lasting.

“This ever-decreasing price of storage has game-changing implications for Africa, which has a dire need for stable and baseload power,” said Van Zuyken.

The gradual removal of diesel subsidies in Nigeria in the past two years also has helped accelerate adoption of solar energy. The policy was implemented sector by sector to cushion its impact, making diesel increasingly expensive and nudging businesses and households toward solar. In September, Nigeria announced plans for a 1 GW solar panel factory, the largest in West Africa. Similar facilities are under construction in Egypt, South Africa and Ethiopia.

As Africa moves to build its own manufacturing capacity, the industry is looking to China to transfer knowhow to help alleviate Africa’s dependence on imported equipment and technology.

Jobs won't be confined to manufacturing.

“The solar jobs boom is occurring in services including installation, maintenance, distribution and financing, where thousands of small and medium enterprises are emerging to meet rising demand,” Van Zuylen said.

Unlike regions such as the Middle East, where governments publish clear 10 or 20-year energy roadmaps, many African markets lack consistent policy signals. So, uncertainty over policies remains a challenge. Solar firms operating across Africa say unpredictable tax regimes, shifting import duties and unclear long-term energy plans undermine investor confidence.

“The problem is not the opportunity. It’s visibility,” said Amos Wemanya, senior analyst on renewable energy at Powershift Africa. “If a government announces a plan, companies need to trust that it will remain in place.”