Saudi Aramco CEO Amin Nasser stated that the oil market is currently balanced, even as global demand is influenced by rising interest rates and slower economic growth in China.
China, the world’s largest oil consumer, is experiencing challenges due to significant shifts in its real estate sector, a key factor in its economic growth.
Speaking during a panel titled “The Future of Energy: What Will Accelerate the Energy Transition?” at the Future Investment Initiative conference, Nasser mentioned that he anticipates global oil demand will reach approximately 106 million barrels per day in the fourth quarter of this year, with an average of 104.5 million barrels for the year.
Earlier this month, OPEC adjusted its forecast for global oil demand growth to 1.93 million barrels per day, down from 2.03 million barrels, marking the third consecutive revision. China accounted for most of this adjustment in the 2024 outlook, with OPEC attributing the revision to actual data and slightly lower demand expectations in certain areas.
Nasser highlighted a positive perspective on the situation, stating: “When people talk about China, they often amplify the negatives while overlooking the positives.”
Discussing the shift to renewable energy, Nasser emphasized the importance of reducing carbon emissions from existing energy sources as a priority, adding that the energy transition must be “affordable, safe, and sustainable.”
He confirmed that Saudi Arabia is “continuing efforts to reduce carbon emissions across all our operations... All our equipment is managed using AI and advanced data analytics.”
Pointing to the Saudi Green Initiative, he underscored the Kingdom’s commitment to the energy transition, while also ensuring continued efforts to expand oil and petrochemical activities.
Nasser further discussed energy needs in the Global South, saying: “The energy transition depends on economic investment levels... We need to start exporting to industrialized nations and enable the Global South to achieve this transition.” He noted that the Global South currently uses just one-tenth of the energy consumed by the Global North.
