SHANGHAI, Jul 6 (SMM) – Amin Hassan Naser, president and CEO of international oil giant Saudi Arabian oil company (Saudi Aramco), said that the continued slump in oil prices is mainly due to people's concerns about an economic recession and a series of economic headwinds, but the fundamentals of the oil market will improve soon.
Responding to low oil prices on Wednesday July 5, Naser said it has been a year of headwinds for the economy, with signs of recession everywhere. But he mentioned that the demand situation could improve, highlighting the economic potential of China, the world's largest importer of crude oil.
Nasser said: "When the situation improves and the economy starts to improve, the Chinese economy starts to pick up, and the demand for jet fuel starts to pick up ... We are optimistic about the future.” He noted that demand for jet fuel, which is integral to the aviation industry, remains below pre-pandemic levels.
He did not give a timetable for demand recovery, but the International Energy Agency (IEA) reported in May that demand could recover in the second half of 2023, predicting a more balanced market in the second half of the year.
In the face of sluggish oil prices, although OPEC+ has been cutting oil production in an attempt to push up oil prices, the effect has been extremely limited, and international oil prices have remained at around $75 a barrel.
On July 3, Saudi Arabia announced that it would extend its voluntary reduction of oil production by 1 million barrels per day until August. Russia also announced that it would cut its daily oil exports to the global market by 500,000 barrels in August in order to ensure market balance.
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