Oil: Aramco optimistic on demand despite coronavirus

CEO Amin Nasser says global demand is currently around 90 million barrels per day, just 10 million less than before the pandemic.

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The boss of Saudi Aramco said on Monday he was optimistic about the growth in global demand for oil, despite the pandemic of the new coronavirus.

Aramco CEO Amin Nasser said global demand is currently around 90 million barrels per day, barely 10 million barrels less than before the pandemic.

“At the end of the year, demand should be at the level of the 1990s,” he assured during a press videoconference on Aramco’s results announced the day before.

Demand has been hit hard by the shutdown of the global economy. It had fallen at one point by over 20 million barrels a day.

“While it is not yet known how long the current uncertainty will last, we are increasingly seeing that the worst of the crisis may be behind us,” Nasser said.

“We are seeing a partial recovery in the energy market in the second half of 2020, as countries around the world take steps to ease restrictions and restart their economies.”

Mr. Nasser described Aramco’s second quarter performance as the worst in generations.

“Due to the pandemic, the second quarter turned out to be the most difficult time in generations, with most industries experiencing severe disruption,” he said.

Aramco on Sunday reported a 73% drop in second-quarter net profit due to weak oil prices and production.

In the three months leading up to June 30, the company posted net income of $ 6.6 billion, up from $ 24.7 million for the same period in 2019.

Aramco’s net profit for the first six months of the year also fell 50% to $ 23.2 billion from $ 46.9 billion for the same period last year.

Mr Nasser said the firm will reduce its investments in the coming years and that by 2021 they will be “significantly lower” than previously announced figures.

But he insisted that Aramco will go ahead with plans to increase its production capacity to 13 million barrels of oil per day from 12 currently.

Production from Saudi Arabia, the world’s largest exporter of crude, fell to 7.5 million barrels per day from an average production of 10 million last year, after the Opep + alliance began cutting production to a record high in May.

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