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Saudi Aramco CEO sees balance returning to oil market in H1

Saudi Aramco CEO sees balance returning to oil market in H1

Amin H. Nasser also warned that $25 trillion of investment was needed to meet demand over the next 25 years

The chief executive of state-owned oil giant Saudi Aramco sees balance returning to the market in the first half of 2017.

In comments made at the World Economic Forum in Davos, Amin H. Nasser said the market was stabilising following a recent deal to cut production by OPEC and non-OPEC countries.

Read: Saudi Aramco mulls oil supply cuts of 3-7% in Feb to meet OPEC target

“The recent agreement… I think it is stabilising the market, the market is balancing. We are hoping by the first half of 2017 there will be an equilibrium, and there will be a growth. Because demand, what we are seeing, is strong. There will be a need for more resources to come,” he was quoted as saying.

However, he also warned that demand for oil and gas was showing no sign of disappearing, telling a panel that $25 trillion in new capacity was needed over the next 25 years.

“It will take decades for them [renewables] to replace petroleum resources. So what we are doing in Saudi Aramco we are building our capacity in the oil,” he said.

Nasser said the company planned to double its gas capacity over the next decade so it could sell more oil on the market.

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