Saudi Aramco glimpses to support up oil demands in China and India

June 28, 2023: Saudi Arabia’s state-owned oil giant Aramco is bullish on oil markets for the rest of 2023 as demand from major importers China and India is expected to be strong despite an expected global downturn.

“We believe that oil demand fundamentals remain generally sound for the rest of the year,” CEO Amin Nasser expressed at the Energy Asia conference in the Malaysian capital, Kuala Lumpur.

His optimism comes even as the world’s largest oil importer, China, shows signs of stalling growth, provoking several cuts in the country’s key lending rates.

“Despite the recession risks in several OECD countries, the economies of developing countries, especially China and India, are driving oil demand growth of over 2 million barrels per day this year,” said Nasser.

He projected that the industry’s supply-demand credits will likely tighten once the broader international economy starts to recover.

“Although China is facing some economic headwinds, the transport and petrochemical sectors are still showing signs of demand growth,” the CEO added.

Oil market prospects to continue for the rest of 2023: Aramco

It echoes the International Energy Agency’s prediction that global oil demand will rise by 2.4 million barrels per day in 2023, outpacing the previous year’s 2.3 million barrels per day increase. The agency noted in its June statement that China accounts for 60% of the gains.

“Indian market is equally robust with the latest readings for May showing both gasoline and diesel shattering records,” the agency said in their June information. Conversely, the demand from OECD countries “remains lackluster” amid an ongoing manufacturing recession and generally suppressed economic growth.