Saudi Gazette report

RIYADH — Saudi Aramco President and CEO Amin Nasser expected global demand for oil to rise by 1.5 million barrels per day (bpd) to 104 million bpd in 2024.

“This is after rising by roughly 2.6 million bpd in 2023. Higher demand, combined with low stocks, will help to tighten the market further,” he said.

Nasser said that the global oil market is expected to witness a shortage in supply after consumer stockpiles depleted by 400 million barrels in the past two years. “This resulted in leaving spare production capacity of the Organization of the Petroleum Exporting Countries (OPEC) as the main source of additional supplies to meet the growing demand,” he said.

The Aramco chief said that global oil markets can cope with Red Sea disruptions in the short run, although prolonged attacks on ships would lead to a shortage of tankers due to longer voyages and a delay in supply.

The OPEC attributed the expectations of growth in global demand for crude oil in 2024 to estimates of global gross product growth at a faster pace than this year, amid greater than expected growth in the Chinese economy.

China, the largest importer of crude oil in the world, with an average consumption exceeding 10 million bpd, is the second largest consumer of it, after the United States, with an average of 14.5 million bpd.