Saudi Arabia’s state-owned oil giant Aramco is bullish on oil markets for the rest of 2023 as demand from major importers China and India is expected to be strong despite an expected global downturn.

“We believe that oil market fundamentals remain generally sound for the rest of the year,” CEO Amin Nasser said at the Energy Asia conference in the Malaysian capital, Kuala Lumpur.

“Despite the recession risks in several OECD countries, the economies of developing countries, especially China and India, are driving oil demand growth of more than 2 million barrels per day this year,” said Nasser.

Once the broader global economy starts to recover, the industry’s supply demand balances will likely tighten, he projected.

“Although China is facing some economic headwinds, the transport and petrochemical sectors are still showing signs of demand growth,” the CEO added.

It echoes the International Energy Agency’s prediction that global oil demand is on track to rise by 2.4 million barrels per day in 2023, outpacing the previous year’s 2.3 million barrel per day increase. The agency noted in their June report that China accounts for 60% of the gains.