Saudi Aramco sees oil demand ‘steady’ as supply growth slows

Dubai / Agencies

Slower growth in oil supply is helping the crude market to re-balance, and prices are set to increase over time, according to the head of the world’s biggest producer. As investments in new oil and natural gas capacity have been being canceled or deferred worldwide, supply is rising more slowly, especially production of U.S. shale oil, Saudi Arabian Oil Co. Chief Executive Officer Amin Nasser said Monday. Global demand is “on a steady, if moderate course,” he said in a speech at a conference in Dubai. “Despite volatility, the market is heading toward re-balance, and prices are likely to strengthen with time,” Nasser said. “However, market volatility could remain with us for the near future.”

MENA MARKETS TO BE VOLATILE
For the coming week, MENA markets are expected to remain volatile mimicking its main mover oil with country specific macro news also possibly playing a role, according to Al Masah Capital. “The US Federal Reserve’s decision to keep rates unchanged while hinting of a probable rate hike by year end coupled with the Bank of Japan policy change and decision to provide additional stimulus if needed, both had a positive effect on investors sentiments nullifying early week negativity and reflecting a regional markets’ performance that was close to unchanged on average,” it noted.