Saudi Aramco has projected that oil demand will remain strong throughout the year, with potential for additional growth if the ongoing US-China trade disputes are resolved. This forecast comes as both countries have temporarily reduced tariffs to mitigate the trade war’s global economic impact.
During a post-earnings conference call, Aramco CEO Amin Nasser expressed optimism about the market’s trajectory. He noted that demand is expected to be steady and growing compared to 2024, and resolving tariff issues could further boost demand. Despite a 4.6% decline in first-quarter profits due to lower sales and increased operating costs, Aramco remains positive about the future. The profit dip reflects broader economic uncertainties affecting crude markets.
In line with its Vision 2030 agenda, Saudi Arabia is diversifying its economy to reduce reliance on oil revenues. Some ambitious projects have been downsized to prioritize infrastructure for global sporting events. The OPEC+ group plans to increase oil production, potentially adding up to 2.2 million barrels per day by November. Aramco estimates that this increased production could boost its annual operating cash flow by approximately $1.9 billion.
Despite the challenges posed by tariffs and market volatility, Aramco reported resilient growth in the second quarter of 2025. Nasser emphasized the company’s strong financial standing and adaptable capital strategy. Aramco has also entered into a venture agreement with China Petroleum & Chemical Corporation (Sinopec) to enhance the Yanbu Refinery in Saudi Arabia. This expansion includes a new mixed-feed steam cracker and aromatics plant, aimed at improving the refinery’s integration and supporting industrial diversification efforts. The project will utilize existing facilities to construct new units, including a 1.8 million tonnes per annum (mtpa) ethylene plant and a 1.5 mtpa aromatics plant, with accompanying downstream polyolefin units.