‘The world should be worried’: Saudi Aramco — the world’s largest oil producer —...

The global oil market remains tight according to Saudi Aramco, the largest oil producer in the world. And that does not bode well for a world that still relies heavily on fossil fuels.

“Today there is spare capacity that is extremely low,” Saudi Aramco CEO Amin Nasser says at a conference in London. “If China opens up, [the] economy starts improving or the aviation industry starts asking for more jet fuel, you will erode this spare capacity.”

Nasser warns that oil prices could quickly spike — again.

“When you erode that spare capacity the world should be worried. There will be no space for any hiccup — any interruption, any unforeseen events anywhere around the world.”

If you share Nasser’s view, here are three oil stocks to bet on. Wall Street also sees upside in this trio.

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Shell (SHEL)

Headquartered in London, Shell is a multinational energy giant with operations in more than 70 countries. It produces around 3.2 barrels of oil equivalent per day, has an interest in 10 refineries, and sold 64.2 million tons of liquefied natural gas last year.

It’s a staple for global investors, too. Shell is listed on the London Stock Exchange, Euronext Amsterdam, and the New York Stock Exchange.

The company’s NYSE-listed shares are up 13.6% year to date.

Piper Sandler analyst Ryan Todd sees an opportunity in the oil and gas supermajor. Last month, the analyst reiterated an ‘overweight’ rating on Shell while raising his price target from $75 to $80.

Considering that Shell trades at around $50.50 per share today, Todd’s new price target implies a potential upside of 58%.

Chevron (CVX)

Chevron is another oil and gas supermajor that’s benefiting from the commodity boom.

For Q2, the company reported earnings of $11.6 billion, which more than tripled the $3.1 billion in the same period last year. Sales and other operating revenues totaled $65 billion for the quarter, up 81% year over year.