May 13, 2025 (MarketLine via COMTEX) --
This forecast comes amid a temporary reduction in tariffs by both the US and China, aiming to mitigate a trade war that has sparked global economic concerns.
Saudi Aramco has projected that oil demand will remain robust throughout the year, with potential for additional growth if the ongoing US-China trade disputes are resolved.
This forecast comes amid a temporary reduction in tariffs by both countries, aiming to mitigate a trade war that has sparked global economic concerns, according to a report by Reuters.
Aramco CEO Amin Nasser, during a post-earnings conference call, shared insights on the market's trajectory.
aEURoeWe expect demand will continue to be steady and growing compared to 2024, and if the whole issue around tariffs is resolved... that also will add to additional demand that will be seen from the market,aEUR Nasser was quoted as saying.
Despite a 4.6% decline in first-quarter (Q1) profits, attributed to lower sales and increased operating costs, Aramco remains optimistic about the future.
The dip in profits reflects broader economic uncertainties that have affected crude markets.
Saudi Arabia, in line with its Vision 2030 agenda, has been diversifying its economy to reduce reliance on oil revenues, even as some ambitious projects have been downsized to prioritise infrastructure for global sporting events, the report said.
The OPEC+ group is expected to ramp up oil production, potentially returning up to 2.2 million barrels per day (bpd) to the market by November.
Aramco has calculated that the increased production could boost its annual operating cash flow by approximately $1.9bn, the report said.
Despite the challenges posed by tariffs and market volatility, the company has reported resilient growth in Q2 2025.
aEURoeCurrently, it is premature to assess the full impact of trade negotiations, as there are many moving parts,aEUR Nasser added.
However, he emphasised Aramco's strong financial standing and adaptable capital strategy.
Aramco has also recently entered into a venture framework agreement with China Petroleum & Chemical Corporation (Sinopec) to enhance the Yanbu Refinery in Saudi Arabia.
This expansion will include a new mixed-feed steam cracker and aromatics plant, aimed at improving the refinery's integration and supporting the country's industrial diversification efforts.
The project will utilise existing facilities to construct new units, including a 1.8 million tonnes per annum (mtpa) ethylene plant and a 1.5mtpa aromatics plant, with accompanying downstream polyolefin units.
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