Aramco chief looks to oil re­bound as curbs ease

CEO up­beat about sec­ond-half per­for­mance with more coun­tries plan­ning to end travel bans

Arab News - - Business - Sean Cronin Lon­don

Saudi Aramco CEO Amin Nasser ex­pects global oil de­mand to re­bound in the sec­ond half of the year as more coun­tries ease travel re­stric­tions.

He made the dis­clo­sure dur­ing an in­ter­view with IHS Markit Vice Chair­man Daniel Yer­gin.

“The worst is be­hind us,” said Nasser. “I’m very op­ti­mistic about the sec­ond half of this year. We see it in China to­day — it’s al­most at 90 per­cent. In gaso­line, it’s around 95 per­cent in China. Gaso­line and diesel are pick­ing up to pre-COVID lev­els. Jet fuel is still lag­ging in terms of less air travel. More coun­tries will start open­ing up. So, we see that re­flected in the de­mand on crude.”

The oil ex­ec­u­tive said that the pace of re­cov­ery would de­pend on whether there was a sec­ond wave

FASTFACT

low as $16 in April, rep­re­sent­ing a 21-year low.

Now analysts ex­pect the oil price to set­tle around $40-a-bar­rel this year ac­cord­ing to the lat­est Reuters poll.

Nasser said

that

Aramco’s lo­cal­ized sup­ply chain helped to mit­i­gate the im­pact of sup­ply in­ter­rup­tions dur­ing lock­downs. “We have seen a lot of plants and fac­to­ries and sup­pli­ers that sup­port Saudi Aramco from Europe, in­clud­ing China and other places — they had to shut down be­cause of the lock­down. That im­pacted us for a while. But be­cause of the op­ti­mum level of in­ven­tory that we have — a lot of things are be­ing man­u­fac­tured in the King­dom — it helped us a lot.”

AFP

Saudi Aramco’s lo­cal­ized sup­ply chain helped mit­i­gate the ef­fect of sup­ply in­ter­rup­tions dur­ing world­wide pan­demic lock­downs, ac­cord­ing to CEO Amin Nasser.

I think we are much bet­ter pre­pared now. All coun­tries learned a lot dur­ing the first wave. Amin Nasser Aramco CEO

Newspapers in English

Newspapers from Saudi Arabia

© PressReader. All rights reserved.