Saudi Aramco CEO expects robust oil demand growth amid lower prices

(MENAFN) Saudi Aramco's CEO, Amin Nasser, expressed optimism about the future of oil demand, forecasting an increase of between 1.6 million and 2 million barrels per day in the latter half of this year. Nasser believes that current market conditions do not justify the recent drop in oil prices, emphasizing that fundamental factors support a stronger outlook. He projects global oil demand will reach 104.7 million barrels per day in 2024, with expectations for demand to surpass 106 million barrels per day during the second half of the year.

Despite Brent crude prices falling to around USD76.60—its lowest level since January—Nasser argued that the market is reacting excessively to fears of slowing economic growth and supply disruptions caused by ongoing Middle Eastern tensions. In a recent earnings call, he highlighted that the fundamentals of the oil market are not aligned with the current price decline. He also anticipates a rise in oil demand in China, estimating it will reach 17.5 million barrels per day in the latter part of the year.

Nasser further noted that forecasts and demand projections are frequently revised, which can complicate data-driven investment decisions. He expects governments to increase their strategic crude reserves, contributing to robust oil demand in the coming months. However, he did not provide details on which countries might be involved in these stockpiling efforts. 

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