The head of Saudi Aramco predicted an increase in oil demand in 2023
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Amin Nasser, chief executive officer of one of the largest energy companies Saudi Aramco, said that this year the demand for oil will increase sharply. The reason for this, according to Mr. Nasser, will be two factors: the recovery of the Chinese economy and the global aviation market.
“We are very optimistic that demand will return to the market,” Amin Nasser told reporters (quoted from Bloomberg). “We are starting to see good signs coming from China. Hopefully, in the next couple of months, we will see even more economic recovery there.”
As for the aviation market, Mr. Nasser saw the reason for the growth in the fact that the demand for jet fuel is now about 1 million barrels per day below the pre-pandemic level – about half as much as a year ago.
The head of Saudi Aramco believes that demand for oil will continue to grow until the end of the decade, despite the fact that electric vehicles are becoming more popular and investors are pouring money into renewable energy sources.
Oil prices plummeted in 2022. Brent oil jumped to almost $130 a barrel after Russian troops entered Ukraine, but fell sharply in recent months as the economies of China, the US and Europe slowed, according to Bloomberg. Fuel is trading at around $86 a barrel, up 1% from late December.
On January 18, the price of the March futures for Brent oil on the ICE exchange rose to $87 per barrel for the first time since January 3. Futures for WTI crude oil for February delivery rose 1.48% to $81.64 per barrel.
Growth in non-OPEC oil production in 2022 made up 1.9 million barrels per day. In 2023, the indicator is expected to increase by 1.5 million barrels per day, to 67.2 million barrels per day.
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