Aramco CEO cites robust demand growth and market resilience despite challenges

Amin Nasser, Saudi Aramco CEO, has firmly rejected claims of an oil glut, insisting the global energy market remains robust and well balanced.

Speaking to CNBC at the world Economic Forum (WEF) in Davos, he emphasised that demand for oil, gas and coal hit record levels last year and continues to do so this year, with no evidence of oversupply in physical markets.

Nasser attributed perceptions of a glut to lower prices rather than fundamentals, pointing out that onshore storage levels sit at the lower end of the five-year average.

He acknowledged disruptions from sanctioned producers but stressed the market’s resilience, with barrels redirecting across regions.

Nasser argued that apparent excess barrels are largely confined to offshore storage, with sanctioned volumes from Russia, Iran and Venezuela accounting for nearly 70 per cent of such holdings.

Turning to the outlook, Nasser projected continued demand strength, forecasting global oil demand growth of 1-1.3 million barrels per day (bpd) in crude for the coming years, following an increase of almost 1.2 million barrels last year.

He dismissed suggestions of peak demand, noting consistent upward revisions to consumption forecasts.

Nasser cautioned that global spare capacity has halved from around 5 million barrels per day, yet the sector has repeatedly demonstrated its ability to manage volatility.

Aramco maintains maximum sustainable capacity of 12 million bpd and significant spare capacity.

The company is also expanding gas production, targeting 6 million barrels of oil equivalent by 2030, while pursuing renewables to supply nearly 20 per cent of Saudi Arabia’s energy needs by the same date.

Nasser highlighted potential in hydrogen and broader energy diversification, provided market offtake materialises.

By Abdulaziz Khattak