Speaking at a business conference on Tuesday, Saudi Aramco CEO Amin Nasser said he expects oil prices to start recovering by the end of 2016.
Signs Of Supply/Demand Gap Contracting
He was quoted by Reuters as saying that current depressed prices are not sustainable, with Brent hovering around $30/bbl. He pointed to indications that demand is increasing, which has begun to close the gap between supply and demand. This dynamism will start driving prices up by the end of the year, he said.
“I think with low oil prices, demand will hopefully also increase… and as such the gap between supply and demand will start closing,” Nasser was quoting by Qatar’s The Peninsula newspaper as saying at the Global Competitiveness Forum organized by the Saudi Arabian General Investment Authority.
“It will definitely be better than what we are currently seeing,” Nasser said.
He did not specify a price range. Nasser said “our prediction is we will see some adjustment” by the end of the year. However, he did say oil prices would not return to $100/bbl for in the foreseeable future.
Who Is Amin H. Nasser?
Before being named Saudi Aramco CEO last September, Nasser was previously the company’s senior vice president for upstream operations. He replaced former CEO Khalid al-Falih, who is now Aramco’s chairman and in May was named the Royal Kingdom’s health minister.
Nasser is the fourth Saudi national to head Aramco, following Oil Minister Ali al-Naimi, Abdullah Jumah and Al-Falih. He has served at the company for over three decades in a variety of roles. Nasser joined Aramco in 1982 after completing a degree in petroleum engineering. He held various assignments with the Production Engineering, Drilling and Reservoir Management departments from November 1982 to February 1991. From March 1991 to May 1997, Nasser served in a variety of supervisory positions in the company’s Engineering and Producing departments.
In January 2008, he was named business line head of E&P, and five months later he was promoted to E&P’s senior vice president.
Nasser is also on the board of the Supreme Council, which is currently restructuring Aramco. Other members of the council include Oil Minister Ali Naimi, Finance Minister Ibrahim al-Assaf, Economy Minister Adel Fakieh, and Aramco chairman al-Falih.