Global oil demand still ‘strong’, Aramco ‘resilient’ enough to withstand volatility: Nasser

Saudi Aramco President and CEO Amin Nasser said that it is too early to fully assess the impact of trade talks due to the several variables involved, emphasizing that the fundamentals of the oil market remain strong despite recent volatility.
 

Global oil demand remains strong in the second quarter of 2025, despite uncertainty related to tariffs and geopolitical tensions, he added.
 

As for the trade tensions between the United States and China, Nasser confirmed that their impact on demand has so far been limited, adding that the incentives package launched by the Chinese government has helped support domestic demand, and if a trade agreement is reached between the two parties, it would further boost demand growth in the second half of the year.
 

In a meeting with analysts and investors attended by Argaam, Nasser stated that Aramco’s financial position remains healthy, adding that the company is continuing to implement its growth plans, backed by the financial flexibility that enables it to withstand market conditions.
 

“Aramco has operational flexibility enough to boost crude oil production to 12 million bpd when needed, with high efficiency and low marginal cost. This could generate an additional operating income of up to $12 billion (SAR 45 billion) for each additional one million barrels per day, based on average 2024 prices,” said the top executive.
 

Additionally, gas growth program is expected to add between $9-10 billion, while the downstream sector is likely to contribute an additional $8-10 billion through growth and operational improvements, according to Nasser.
 

Nasser pointed out that global oil demand reached a record high in Q1 2025, hitting 104.3 million bpd, an increase of 1.7 million bpd compared to the same period last year. Meanwhile, global inventories fell to their lowest level in five years, covering around 40 days.
 

“Aramco is seeing continued demand growth, especially in Asian markets. China continues to maintain a high consumption level of 17.4 million bpd, while the U.S. is seeing growth in transportation fuel consumption, driven by lower prices,” said Nasser.
 

He also noted that Aramco will leverage the increased production under the OPEC+ alliance, which began in April with a 200,000 bpd increase. This is expected to add $1.9 billion (SAR 7.1 billion) annually in cash flow, with the same increase anticipated in June.
 

Nasser affirmed that Aramco’s resilience in managing low-cost, low-carbon production capacity gives it a sustainable competitive edge, along with the lowest extraction costs among peers and unprecedented free cash flows in terms of stability and volume.
 

As for Aramco’s investments, the CEO stressed that, despite implementing the largest investment program in its history, the company still records the lowest investment-to-cash flow ratio among international oil producers, thus boosting its ability to distribute the highest dividends to shareholders.
 

Aramco’s free cash flow hit $19.2 billion (SAR 72 billion). It has maintained the strength of its balance sheet, with the lowest debt ratio among peers at 5.3%, he added.
 

Nasser also clarified that the board of directors announced base dividend distributions of $21.1 billion (SAR 79.1 billion), up 4.2% year-on-year, in addition to performance-linked distributions of $220 million (SAR 825 million), to be paid in May.
 

Furthermore, demand for liquids-to-chemicals products is on the rise. Transportation fuel consumption is expected to reach 8.1 million bpd in the second half of this year, compared to 7.5 million bpd in the same period of 2024, an increase of 600,000 barrels, according to Nasser.
 

He also indicated that global transportation fuel consumption has reached 65 million bpd, the highest level recorded in six years.