The global oil market is currently in a state of deficit and oil demand will continue to grow at against the backdrop of the growth of the world's largest economies. This opinion was expressed by the financial director of the Saudi oil company Saudi Aramco, Ziyad al-Murshed.
For example, S&P Global in its latest forecast expects an increase in oil demand this year by 1.7 million barrels per day. In addition, commercial oil inventories fell to a five-year low, despite increased oil supply from some non-OPEC countries. “We also expect jet fuel demand to continue to grow in 2024, reaching 7.5 million barrels per day, up from 7.2 million barrels per day in 2023. Overall, if we look at the supply-demand relationship, we we are looking at a deficit market”, he said.
Al-Murshed added that the global economy has demonstrated its resilience in the first quarter and oil demand growth remains “healthy” and amounted to 2% or 1.9 million barrels per day. According to him, the economic growth in the USA, China and India is becoming a serious driver of the increased demand for oil.
Saudi Aramco's CFO cited data showing China's oil demand growth of 600,000 bpd year-on-year in the first quarter of 2024 and India's 200,000 bpd . “We expect that demand will continue to grow”, al-Murshed emphasized.