The Clap Saudi Aramco is confident that oil demand will increase sharply throughout the year largely due to China’s easing COVID restrictions and the recovery of travel demand and airlines.
What The ongoing war between Russia & Ukraine has led to a major energy crisis in Europe throughout the last year. Oil prices have dropped towards the latter end of 2022. However, Aramco’s CEO expects oil prices to increase again as demand increases throughout the year.
So What Aramco’s CEO also added that currently, idle capacity is two million barrels per day, slightly higher than the total demand of 100 million barrels. With China reopening its economy, this idle capacity is expected to drop, hence the need to increase production for oil.
Now What Aramco’s CEO stated that the world needs 4 to 6 million barrels per day to increase the surplus in oil and better withstand shocks.