Aramco’s CEO confident of higher oil demand in 2023 as China reopens

Saudi Aramco President and CEO Amin Nasser

Saudi Aramco is confident demand will pick up strongly this year as China reopens its economy and the aviation market recovers, President and CEO Amin Nasser told Bloomberg today, Jan. 18. 

“We are starting to see good signs coming out of China. Hopefully, in the next couple of months, we’ll see more of a pickup in the economy there,” Nasser said. 

Demand for jet fuel significantly increased compared to last year. It is now around one million barrels per day (bpd) below pre-pandemic levels, nearly half the figure from a year ago, he explained, adding that is picking up. 

Nasser reiterated that companies need to invest more in oil production. Idle capacity stands at two million bpd, slightly above total demand of 100 million barrels. This will probably decrease as China ends its COVID-19 lockdowns.  

Moreover, the world needs four to six million bpd of new production just to make up for the natural decline in existing fields, according to the CEO.

The world’s largest oil exporter expects oil demand to continue growth for the rest of the decade, even as electric vehicles (EVs) become more popular and money is invested in renewable energy. 

“It’s offsetting some of the demand” for oil, said Nasser, noting that crude consumption will definitely be higher in 2030.