Saudi Aramco Foresees Tightly Balanced Oil Market

SEATTLE (Oil Monster): Saudi oil major Aramco foresees tightly balanced oil market in the short to medium term. At the same time, it maintains a cautiously optimistic view on the market.

Amin Nasser, Chief Executive, Aramco, while speaking to media declaring its results for the previous year, noted that it reported best ever annual profits in 2022, since the listing of the company. The spare capacity continues to remain tight at 2 million barrels per day. The Chinese reopening after pandemic restrictions has resulted in increased demand for jet fuel, he added.

The most recent deal between Iran and Saudi Arabia to resume relations is likely to have huge positive impacts on global energy markets, as it will deliver stability in the entire region. Meantime, the boosted supply of Russian oil to Asian countries, has not impacted Aramco’s supplies to primary Asian customers, including China and India.

Also, Nasser hinted at potential acquisitions in the forthcoming year, especially in liquefied natural gas (LNG) market. He noted that the company is in active talks with regards to LNG investments, though he declined to provide further details. Aramco will focus on ensuring additional supply in the market so as to prevent supply tightness in the medium to long term, he added.

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