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Aramco predicts demand growth of 1.3 million bpd

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The largest exporter of oil in the world, Saudi Aramco, has predicted that the world’s demand for crude oil will increase by 1.3 million barrels per day (bpd) this year.

Amin Nasser, the chief executive officer of Saudi Aramco, spoke to Reuters during the Davos World Economic Forum. He said that global oil demand will increase from an average of 104.6 million bpd in 2024 to nearly 106 million bpd.

Nasser commented:

“We still think the market is healthy … last year we averaged around 104.6 million barrels (per day), this year, we’re expecting an additional demand of about 1.3 million barrels … so there is growth in the market.”

Saudi Aramco owns the Valvoline lubricant brand. It’s estimated demand growth is somewhat higher than that of the International Energy Agency (IEA). In its latest monthly Oil Market Report, the IEA predicted just 1.05 million bpd in demand growth. Aramco’s estimates are more closely aligned with those of OPEC, with the cartel expecting oil demand to grow by 1.4 million bpd in both this year and the next.

Nasser was also asked about how fresh US sanctions on Russian oil might affect the flow of crude oil. He said that any loss of supply or other potential issues were impossible to ascertain at this early stage. The new sanctions are intended to disrupt the flow of oil to countries not sanctioning Russia and give the US Administration greater leverage in brokering a peace deal in Ukraine.

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