Oil demand is expected to grow between 1.6 million and 2 million barrels per day in the second half of this year, according to Aramco’s top executive.
Amin H. Nasser, chief executive of Saudi energy giant Aramco, highlighted that market fundamentals did not support the current decline in oil prices.Â
Nasser, who heads the world’s highest-profitable oil company, expects global oil demand to reach 104.7 million barrels per day (bpd) in 2024, indicating a demand forecast of more than 106 million bpd in the second half of the year.
He said that in his view, the market was overreacting and the fundamentals were not supporting the price decline that was being seen at the time. He indicated that he expected China’s oil demand to increase to 17.5 million barrels per day in the second half of 2024. Nasser noted that there seemed to be an upward trend in demand forecasts by various agencies, which made it challenging to make data-based investment decisions as the reviews continued to surprise the market to some extent.
He also noted that there seems to be a continuous review of demand in an upward trend by a number of forecasters and agencies, which makes it difficult to make data-based investment decisions as the reviews continue to carry market surprises to some extent.
Moreover, Nasser stated that he expected governments to support strategic crude stocks, which would further contribute to good oil demand over the next few months, though he did not specify which countries he was referring to.
Aramco’s capital expenditure increase
Moreover, Aramco’s capital expenditure exceeded SAR45 billion ($11.98 billion) in the second quarter of the year, up 16 percent year over year, according to the company’s financial statements. Data showed that the company’s capital expenditure increased during the quarter, mainly due to an increase in its exploration and production investments by 19 percent to more than SAR37 billion ($9.85 billion).
For more news on energy, click here.
