Saudi Aramco sees good signs oil demand’s rising as shares hit record
BNN Bloomberg
Saudi Aramco shares rose to a record as its chief executive officer said oil demand continues to rebound from the coronavirus pandemic, including in the company’s main market of Asia.
Saudi Aramco shares rose to a record as its chief executive officer said oil demand continues to rebound from the coronavirus pandemic, including in the company’s main market of Asia.
“With the global recovery we’re seeing today, there is more demand for products and we see that from different enclaves, especially in Asia,” CEO Amin Nasser said during a speech in Riyadh, Saudi Arabia’s capital. “There’s some pick up in the rest of the world.”
Crude prices have surged around 20 per cent this year to more than US$90 a barrel with consumption increasing and many major producers struggling to boost supply. Several traders believe prices will soon hit US$100.
The stock gained as much as 6.6 per cent to 40.20 riyals, before paring gains to 4.1 per cent as of close in Riyadh. That boosted its market valuation by US$83 billion to US$2.1 trillion, behind only Apple Inc. and Microsoft Corp.
Crude’s rise is contributing to an acceleration in inflation globally and putting pressure on central banks to increase interest rates. U.S. President Joe Biden, keen to ease cost-of-living pressures for Americans before mid-term elections in November, has in recent months called on producers to increase output faster.
