KHOBAR, Saudi Arabia (Reuters) - Saudi Aramco [SDABO.UL] expects a recovery in oil prices by the end of this year, the state oil giant’s chief executive said on Monday, emphasizing that Saudi Arabia will always meet customer demand.
The comments by CEO Amin Nasser came after the powerful young prince overseeing Saudi Arabia’s economy, Deputy Crown Prince Mohammed bin Salman, unveiled ambitious plans on Monday aimed at ending the kingdom’s “addiction” to oil and transforming it into a global investment power.
The two-year downturn in crude prices has been particularly painful for the world’s big oil producers, but Aramco’s Nasser believes the end of the slump is in sight.
“(This is) what we hope for ... by the end of the year, as we have always said, prices will start adjusting upward because the current market price is not sustainable for the long term,” Nasser told Reuters.
“The balance between supply and demand will start adjusting towards the end of the year.”
Nasser made similar comments in January, when he said that low prices at around $30 a barrel were not sustainable and that prices would not return to $100 for the foreseeable future.
Asked if Aramco plans to raise its oil production, Nasser said on Monday that its maximum sustainable capacity remains at 12 million barrels per day and the company would always meet additional demand.
“Whatever our customers require from us in terms of supply, we will meet it,” he said when asked if the company had plans to boost production.
“We are always ready to meet our maximum sustainable capacity whenever we are required to do so.”
Reporting by Reem Shamseddine; Editing by David Goodman
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