Saudi oil giant Aramco expects oil demand to remain resilient this year and sees further upside if the US and China successfully resolve their trade dispute.
Washington and Beijing agreed to temporarily slash reciprocal tariffs earlier on Monday, in a deal that surpassed expectations as the world’s two biggest economies seek to end a damaging trade war that has stoked fears of recession and roiled financial markets.
“We 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,” Aramco CEO Amin Nasser said in a post-earnings conference call on Monday.
Aramco, the world’s top oil exporter, reported posted first-quarter profits of $26 billion on Sunday, down 4.6% from the prior year.
Aramco had revenues of $108.1 billion over the quarter, the company reported in a filing on Riyadh’s Tadawul stock exchange. The company saw $107.2 billion in revenues and profits of $27.2 billion the same quarter last year.
Meanwhile, the OPEC+ group surprised markets in April by agreeing to a larger-than-expected output hike for May.
Saudi Aramco said the additional production could add potentially $1.9 billion in annual operating cash flow.
“Currently, it is premature to assess the full impact of trade negotiations, as there are many moving parts,” Nasser said, but added that Aramco is well positioned thanks to its healthy financial position and flexible capital.
