Aramco Supplies Remain Adequate Despite Oil Output Cuts

Saudi Aramco’s CEO Amin Nasser said on Monday that the company’s supplies to customers remain adequate even with recent voluntary oil production cuts by the kingdom, adding that global demand remained resilient despite economic headwinds.

Saudi Arabia last week decided to extend a voluntary oil output cut of one million barrels per day for another month to include September, and said it could be extended beyond that or even deepened.

“We still have adequate supply to satisfy our customers,” Nasser said on Monday.

Oil futures are now at their highest since mid-April after Saudi Arabia etc. pledged to keep supplies down for another month to tighten global markets further. Brent was trading around $86 a barrel on Monday.

Aramco reported on Monday a near 38% drop in second-quarter net profit on the back of weaker oil prices and thinner refining and chemicals margins.

Despite the economic challenges, Aramco has seen positive signals that global demand remains resilient , Nasser told reporters on a media call，adding that the aviation sector was at 85% compared to pre-pandemic levels, indicating room for growth.