Saudi Aramco CEO Predicts Strong Oil Demand Despite Price Drops

Saudi Aramco Chief Amin Nasser anticipates global oil demand growth of 1.6 to 2 million barrels per day in the second half of this year, stressing that current fundamentals do not support the recent price drop. He predicts 2024's demand to reach 104.7 million barrels per day.

Saudi Aramco Chief Executive Amin Nasser projected substantial oil demand growth ranging between 1.6 and 2 million barrels per day (bpd) for the latter half of this year. Despite a current dip in oil prices, Nasser emphasized that the fundamentals do not justify such a decline.

Nasser, steering the world's most lucrative oil firm, forecasts global oil demand to hit 104.7 million bpd in 2024, with some predictions suggesting it could exceed 106 million bpd in the year's second half. Traders have attributed recent price drops to concerns about slower economic growth impacting demand, even as Mideast supply tensions escalate.

Amid these concerns, Nasser noted that U.S. gasoline supply had surged in May, highlighting robust demand, and anticipated China's demand would climb to 17.5 million bpd later in the year. He also foresees governments replenishing strategic crude inventories, bolstering oil demand further in the upcoming months.

(With inputs from agencies.)