Saudi Aramco’s chief executive officer dismissed forecasts from a number of key agencies that the oil market is likely to move into surplus next year.
World oil demand is likely to expand by as much as 1.4mn barrels a day in 2026, Aramco CEO Amin Nasser said at the Future Investment Initiative in Riyadh. Market fundamentals are currently “strong” and consumption in China remains healthy, he said.
“We don’t see a glut,” Nasser said on the sidelines of the conference.
Aramco has maintained its bullish stance on oil for months. The increase in population and living standards in developing nations will ensure demand continues to grow, Nasser said in London earlier this month.
On the other hand, the International Energy Agency sees a record oversupply next year as demand growth eases while supply from Opec+ and others such as the US, Brazil and Canada grow.
Oil prices are down about 13% in London this year. Wall Street firms including Goldman Sachs Group Inc and JPMorgan Chase & Co predict further losses, but the market has so far been spared the crash that some anticipated when Saudi Arabia and its Opec+ partners starting opening the taps earlier this year.
Nasser also said the direction of oil prices will depend in part on the impact of US sanctions on Russia. President Donald Trump this month put new restrictions on two of Russia’s biggest oil companies.
“We have to wait and see” how sanctions impact oil prices, Nasser said.
World oil demand is likely to expand by as much as 1.4mn barrels a day in 2026, Aramco CEO Amin Nasser said at the Future Investment Initiative in Riyadh. Market fundamentals are currently “strong” and consumption in China remains healthy, he said.
“We don’t see a glut,” Nasser said on the sidelines of the conference.
Aramco has maintained its bullish stance on oil for months. The increase in population and living standards in developing nations will ensure demand continues to grow, Nasser said in London earlier this month.
On the other hand, the International Energy Agency sees a record oversupply next year as demand growth eases while supply from Opec+ and others such as the US, Brazil and Canada grow.
Oil prices are down about 13% in London this year. Wall Street firms including Goldman Sachs Group Inc and JPMorgan Chase & Co predict further losses, but the market has so far been spared the crash that some anticipated when Saudi Arabia and its Opec+ partners starting opening the taps earlier this year.
Nasser also said the direction of oil prices will depend in part on the impact of US sanctions on Russia. President Donald Trump this month put new restrictions on two of Russia’s biggest oil companies.
“We have to wait and see” how sanctions impact oil prices, Nasser said.