DUBAI, March 12 Reuters Aramco Chief Executive Amin Nasser said on Sunday that the oil market would remain tightly balanced in the short to medium term, adding that he was cautiously optimistic.

Nasser was speaking to the press after the Saudi Arabian oil giant reported its highest ever annual profit since the company was listed. Aramco39;s shares traded 0.6 higher after the results were released, but closed mostly flat at 32.8 riyals 8.74 a share.

He said spare capacity remained tight at 2 million barrels per day, while demand for jet fuel was increasing alongside China39;s reopening from tight COVID19 restrictions.

If you considered China opening up and a pick up in jet fuels and very limited spare capacity, we are talking 2 million barrels, so as I said we are cautiously optimistic in the short to midterm and the market will remain tightly balanced, he said.

A deal agreed between Iran and Saudi Arabia on Friday to reestablish relations after years of hostility that had threatened stability and security in the Gulf would have a positive effect on global energy markets as it promotes regional stability, Nasser said.

The kingdom has blamed Iran for missile and drone attacks on its oil facilities in 2019 as well as attacks on tankers in Gulf waters. Iran has denied those charges.

Aramco39;s crude supplies to its main Asian customers, including China and India, were not impacted by the uptick of Russian sales into Asia on the back of Western sanctions.

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