Ali Al-Naimi, the Minister of Oil and Mineral Resources of Saudi Arabia, announced during a meeting with Jung Kyung-choo, the Minister of Economy and Finance of South Korea, that the country is prepared to meet the oil needs of South Korea and other Asian countries. This meeting was held to discuss bilateral relations and the economic situation in South Korea.
The Role of South Korea in Saudi Oil Imports
South Korea is one of the largest importers of Saudi oil, and this Arab country has made significant investments in the oil and petrochemical sector of South Korea. Al-Naimi referred to the recent rise in global oil prices during this meeting and stated that this increase is not due to a supply shortage. He explained that demand and supply in the international market are balanced and commercial reserves remain stable.
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The Impact of Oil Prices on the Global Market
On Friday, oil prices rose above $112 per barrel in New York, and Brent oil prices also increased to $126. This price increase is attributed to the declining value of the dollar and ongoing concerns about oil transportation from the world's largest oil suppliers. West Texas Intermediate crude oil prices for May delivery rose by $2.49 or 2.3% to reach $112.79 per barrel on the New York Mercantile Exchange. This week, crude oil prices have set new records almost every day.
Forecast for Future Oil Demand
In a related development, Khalid Al-Falih, the head of Saudi Aramco, predicted that oil demand from industrialized countries will decline by 2035. However, this decline will be offset by increased demand from Asian economic giants such as China, India, and South Korea, as well as Brazil. Al-Falih also announced Saudi Aramco's plans to implement two oil projects in Indonesia and Vietnam as part of efforts to expand its activities in Asia.
He added that Saudi Aramco is collaborating with multinational companies such as Total, Dow Chemical, Sumitomo Chemical, and Royal Dutch Shell. These collaborations reflect Saudi Arabia's strategy to strengthen its position in Asian markets and meet the growing oil needs of these countries.
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