Global oil market dynamics are anticipated to remain robust throughout the remainder of the year, buoyed by strong demand in emerging nations, particularly China and India, stated Amin Nasser, CEO of Saudi Aramco, during the Energy Asia conference hosted by Petronas, Malaysia’s state oil firm.
Nasser affirmed, “In general, we hold the belief that the fundamentals of the oil market will stay sound for the rest of this year. Despite the looming economic uncertainties in some OECD countries, the developing economies, notably China and India, continue to fuel a healthy expansion in oil demand, surpassing 2 million barrels per day in 2023.”
While China faces some economic challenges, the sectors of transportation and petrochemicals display encouraging indications of demand growth, he further added.
Since the beginning of the year, Brent crude futures have experienced a decline of approximately 14% as rising interest rates dampened investor enthusiasm. Additionally, China’s anticipated economic recovery has encountered obstacles, with softer-than-expected data related to consumption, production, and the property market.
Moreover, despite Western sanctions, crude oil supplies from Russia and Iran have remained steady, counterbalancing the production cuts implemented by Saudi Arabia and other member nations of the Organization of the Petroleum Exporting Countries (OPEC).
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