Amin Nasser, CEO of Saudi Aramco, said Monday, June 26, that the fundamentals of the global oil market are expected to remain strong for the rest of this year, supported by strong demand from developing countries, especially China and India.
Overall, we believe the fundamentals of the oil market will remain strong for the rest of the year, he added during the Asia Energy Conference.
He continued, despite the risks of recession in many OECD countries, the economies of developing countries, especially China and India, are leading to strong growth in oil demand by more than two million barrels per day this year.
He added that although China is facing economic hurdles, the transportation and petrochemical sectors are still showing indications of demand growth.
Brent crude futures have fallen by about 14% since the beginning of the year, as higher interest rates undermined investor appetite, while China's promising economic recovery faltered after several months of weaker-than-expected consumption, production and real estate market data.
Crude oil supplies from Russia and Iran have also held up despite Western sanctions, offsetting the impact of production cuts in Saudi Arabia and other OPEC countries.
