Commodities and Futures News

Aramco’s Nasser says oil market tightly balanced

2023.03.12 08:25


© Reuters. FILE PHOTO: A 3D printed natural gas pipeline is placed in front of displayed Saudi Aramco logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration

By Maha El Dahan and Hadeel Al Sayegh

DUBAI (Reuters) – Aramco (TADAWUL:)’s chief executive Amin Nasser said on Sunday the market would remain tightly balanced in the short to medium term, adding that he was cautiously optimistic.

Nasser was speaking to the press after the Saudi Arabian oil giant reported its highest ever annual profit since the company was listed.

He said spare capacity remained tight at 2 million barrels per day, while demand for jet fuel was increasing alongside China’s re-opening from tight Coronavirus-related restrictions.

“If you considered China opening up and a pick up in jet fuels and very limited spare capacity, we are talking 2 million barrels, so as I said we are cautiously optimistic in the short to midterm and the market will remain tightly balanced,” he said.

A deal agreed between Iran and Saudi Arabia on Friday to re-establish relations after years of hostility that had threatened stability and security in the Gulf would have a positive effect on global energy markets as it promotes regional stability, Nasser said.

The kingdom has blamed Iran for missile and drone attacks on its oil facilities in 2019 as well as attacks on tankers in Gulf waters. Iran has denied those charges.

Aramco’s crude supplies to its main Asian customers, including China and India, were not impacted by the uptick of Russian sales into Asia on the back of Western sanctions.

“We have a track record of maintaining reliabitliy and an excellent customer base. It didn’t impact our supply to these main markets,” he said.

On recent imports of Russian diesel into Saudi Arabia, Nasser said the kingdom had always been importing products for its domestic market since before the Russian invasion of Ukraine.

Nasser said Aramco was looking globally at liquefied (LNG) market opportunities, when asked about potential acquisitions in the year ahead.

The company is in “active talks and discussions” in terms of LNG investments, he said without elaborating.

Nasser cautioned that he still did not see enough investment to sustain demand in the long term going into the sector, saying that supply wouldn’t be adequate in the mid- to long term if that trend continued.

“We need to make sure that there is additional supply in the market otherwise this tightness of supply in the mid- to long term will have an impact.”

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 65,983.68 2.30%
ethereum
Ethereum (ETH) $ 3,443.86 0.98%
tether
Tether (USDT) $ 0.999815 0.08%
bnb
BNB (BNB) $ 584.09 1.14%
solana
Solana (SOL) $ 173.30 3.15%
usd-coin
USDC (USDC) $ 0.999953 0.01%
staked-ether
Lido Staked Ether (STETH) $ 3,442.34 1.03%
xrp
XRP (XRP) $ 0.603569 1.65%
dogecoin
Dogecoin (DOGE) $ 0.13098 5.03%
the-open-network
Toncoin (TON) $ 6.91 1.01%
cardano
Cardano (ADA) $ 0.40988 4.01%
tron
TRON (TRX) $ 0.133992 1.14%
avalanche-2
Avalanche (AVAX) $ 28.90 10.01%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 65,994.68 2.33%
shiba-inu
Shiba Inu (SHIB) $ 0.000017 2.89%
chainlink
Chainlink (LINK) $ 13.84 1.42%
polkadot
Polkadot (DOT) $ 5.93 3.22%
bitcoin-cash
Bitcoin Cash (BCH) $ 368.05 3.32%
near
NEAR Protocol (NEAR) $ 5.72 4.97%
uniswap
Uniswap (UNI) $ 7.66 3.02%
litecoin
Litecoin (LTC) $ 72.63 0.91%
leo-token
LEO Token (LEO) $ 5.82 0.29%
dai
Dai (DAI) $ 0.99928 0.05%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,596.82 0.96%
pepe
Pepe (PEPE) $ 0.000012 0.18%
matic-network
Polygon (MATIC) $ 0.535836 0.06%
internet-computer
Internet Computer (ICP) $ 9.76 2.92%
kaspa
Kaspa (KAS) $ 0.176753 0.91%
ethereum-classic
Ethereum Classic (ETC) $ 23.67 3.07%
ethena-usde
Ethena USDe (USDE) $ 0.998882 0.17%
aptos
Aptos (APT) $ 7.02 3.42%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.29 6.19%
stellar
Stellar (XLM) $ 0.101631 2.64%
monero
Monero (XMR) $ 160.61 0.03%
mantle
Mantle (MNT) $ 0.879068 0.55%
blockstack
Stacks (STX) $ 1.78 4.18%
dogwifcoin
dogwifhat (WIF) $ 2.61 2.67%
arbitrum
Arbitrum (ARB) $ 0.775298 1.18%
maker
Maker (MKR) $ 2,758.53 1.43%
filecoin
Filecoin (FIL) $ 4.45 1.77%
render-token
Render (RENDER) $ 6.47 2.55%
crypto-com-chain
Cronos (CRO) $ 0.092806 0.53%
cosmos
Cosmos Hub (ATOM) $ 6.26 0.71%
hedera-hashgraph
Hedera (HBAR) $ 0.067997 3.68%
okb
OKB (OKB) $ 40.18 3.21%
immutable-x
Immutable (IMX) $ 1.53 1.45%
injective-protocol
Injective (INJ) $ 24.32 6.04%
vechain
VeChain (VET) $ 0.028978 1.23%
bittensor
Bittensor (TAO) $ 325.20 0.52%
optimism
Optimism (OP) $ 1.85 3.91%