ALBAWABA – Saudi Aramco CEO Amin Nasser said Monday that the fundamental drivers of the global oil markets are expected to remain strong for the rest of the year, bolstered by strong demand from developing countries, especially China and India.
"Overall, we believe that the fundamentals of the oil market will remain strong for the rest of the year," he added during the Asia Energy Conference.
"Despite the risks of recession in many OECD countries, the economies of developing countries, particularly China and India, are leading to strong oil demand growth of more than two million barrels per day this year," he said.
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 about 14 percent since the beginning of the year as higher interest rates undermined investor appetite, according to Sky News Arabia. Meanwhile, China's promising economic recovery faltered after several months of weaker-than-expected consumption, production and property market data.
Crude oil supplies from Russia and Iran have also held up despite Western sanctions. This has relatively offset the impact of production cuts in Saudi Arabia and other member countries of the Organization of Petroleum Exporting Countries and their allies (OPEC+), Sky News Arabia Reported.
