Global oil fundamentals to be supported by robust demand from China, India: Aramco

Strong demand growth of over 2 mn barrels per day expected this year
Global oil fundamentals to be supported by robust demand from China, India: Aramco
Aramco Chief Amin Nasser (Photo from Aramco)

Saudi oil giant Aramco Chief Executive Officer (CEO) Amin Nasser said on Monday that the fundamentals of the global oil market are expected to remain strong for the rest of this year, supported by strong demand from developing countries, especially China and India.

“Despite the risks of recession in many Organization for Economic Co-operation and Development (OECD) countries, the economies of developing countries, particularly China and India, are leading to robust oil demand growth of more than 2 million barrels per day this year,” he added during the Asia Energy Conference.

Read more: Saudi Aramco, China sign $12.2 bn oil refinery deal

Although China was facing economic constraints, the transport and petrochemical sectors continued to show signs of growth in demand, said Nasser.

With regard to energy transformation, Aramco’s CEO noted that completing the global energy transformation in just a quarter of a century was “fanciful”, explaining that renewable energy growth had not kept pace with growth in global energy consumption.

Brent crude futures have fallen about 14 percent since the beginning of the year as rate hikes undermined investors’ appetite, while China’s promising economic recovery stalled after several months of weaker-than-expected consumption, production and real estate market data.`

For more news on energy, click here.

The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.