Saudi Aramco CEO predicts 1.6-2M bpd oil demand rise after sharp price fall
The bullish perspective follows the price of Brent crude falling amid the global stock downturn and coincides with Aramco buying a more than $700 million stake in a Saudi energy complex.
Global demand for crude remains strong despite a mass sell-off earlier this week, the head of Saudi Aramco, the world's largest oil company, said on Tuesday.
CEO Amin Nasser told analysts and investors on an earnings call that global oil use is set to rise between 1.6 million and 2 million barrels a day this year, reaching more than 106 million barrels a day of consumption in 2025.
“The market to my view is overreacting and the fundamentals do not support the drop in prices that we are witnessing today,” said Nasser, Bloomberg reported. “The market is reading too much into the short term responses and the news coming from the US with regard to the number of jobs for the month.”
Nasser’s comments follow the price of Brent crude, considered the benchmark for global oil prices, falling to just over $75 a barrel on Monday, down from more than $80 a barrel at the end of last week. The price drop came amid global stocks tanking in response to fears of a recession in the United States and a Middle East war.
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