Saudi Aramco’s president and chief executive Amin Nasser said he expected the recovery in the global oil market to continue after the coronavirus-induced downturn, which he called the worst in his generation. According to him, the world had not seen such a cyclical downturn in crude markets before, referring to the event of the past six months when the health crisis ravaged global oil consumption.
However, he was upbeat that the worst was over, although the threat from a potential new COVID-19 infection wave persists. The future oil demand growth will likely depend on whether a vaccine is created and how quickly it will be widely available. He said that the market is on course to have a better shape in the fourth quarter and next year.
Global oil demand crashed in April from around 100 million bpd to 75 million and 80 million bpd, with US WTI prices collapsing to negative territory for a brief period. However, the International Energy Agency estimated demand to reach 96 million bpd by the fourth quarter of 2020 and 99 million bpd toward the end of 2021. Nasser said that demand recovery was strong in Asia, especially in China, Aramco’s largest market.
Nasser added that to overcome the adverse impact of the COVID-19 pandemic, Aramco has intensified cost discipline and is focusing on capital flexibility. Aramco will maintain its maximum sustained capacity of 12 million bpd while continuing expansion in its natural gas portfolio.
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Published on October 12, 2020 5:14 PM (GMT+8)Last Updated on October 12, 2020 5:14 PM (GMT+8)
