Aramco chief blames recessionary signals for low oil price, says ‘optimistic’ about future of demand
Amin Nasser, chief executive of Saudi Arabian oil giant Aramco.
Adam Galica | CNBC
The chief executive of Saudi Arabian oil giant Aramco on Wednesday attributed the ongoing depression of oil prices to recessionary fears and economic headwinds, painting a more optimistic landscape for demand to come.
“This is in a year where there [are] economic headwinds, where there [are] recessionary signs everywhere … China’s still picking up,” Aramco’s Amin Nasser said at a Vienna conference of the Organization for Petroleum Exporting Countries, in answer to a CNBC question on the continuing low level of oil prices.
Global crude oil prices have stayed tightly rage-bound just above the $75-per-barrel threshold despite a spate of additional voluntary cuts that some OPEC members are implementing until the end of 2024.
On Monday, heavyweights Saudi Arabia and Russia — who lead the group of OPEC countries and its allies, known as OPEC+ — crowed this effort with pledges for additional declines. Riyadh intends to extend a 1-million-barrel-per-day voluntary cut initially declared for July into August, while Moscow has committed to lower its exports by 500,000 barrels per day next month.
Yet prices for Brent futures with September expiry were just $76.76 per barrel at 2:28 p.m. London time, up by 51 cents per barrel from the previous settlement.
Nasser signaled that the demand picture is likely to improve, stressing the potential of China, the world’s largest importer of crude oil.
“When things picks up, and [the] economy starts improving, China starts picking up, jet fuel picks up … we are optimistic about the future,” he said, noting that the demand for the jet fuel supplies that are integral to the aviation sector remain below levels experienced before the onset of the Covid-19 pandemic.
He did not specify a timeline for this demand recovery, but Paris-based energy watchdog the International Energy Agency in May flagged “tighter market balances we anticipate in the second half of the year, when demand is expected to eclipse supply by almost 2 mb/d.”
Market watchers have been on the particular lookout for demand improvements from China, whose consumption was limited by zero-Covid measures before beginning to resurge since the start of the year.
“We are making bigger investments. Our guidance is $45 to $55 billion for this year, that’s growing in leaps. So that shows our confidence in the future,” Nasser said, referencing Aramco’s capital expenditure for 2023.
Nasser has historically echoed the position of several OPEC+ officials that dual investment in fossil fuels and decarbonization is necessary to avoid energy supply deficits throughout the green transition. This stands in contrast to the position of the IEA, which in a landmark report in May 2021 called for no new oil and gas projects if the world is to reach net zero by 2050.
“There is no one-size-fits-all solution to the climate challenge,” OPEC Secretary-General Haitham al-Ghais said on Wednesday at the start of the OPEC conference. “Of course, as an industry we want to ensure that we have an emissions-free future.”
Tesla is going to build a new Megafactory in Texas near Houston, according to a tax abatement agreement with Waller County.
At the time of writing, Tesla had yet to comment on the new project, but the Waller County Commissioners Court confirmed the project on Wednesday when they approved a tax abatement deal with the company:
Under the proposed agreement, Tesla will receive tax abatements from Waller County based on property improvements. The deal includes $44 million in facility improvements and $150 million in Tesla manufacturing equipment that Tesla will install. The next phase involves a new $31 million distribution facility with about $2 million in Tesla distribution equipment and building upgrades.
Tesla is going to take over a 1-million-sq-ft building that it already held the lease on at the Empire West industrial park near Katy, Texas – just outside of Houston.
Logistics company DB Schenker occupied the space where it handled parts for Tesla, but it will move out and Tesla plans to build Megapack production lines at the site:
Tesla will operate a new Megapack battery storage manufacturing facility at a 1 million-square-foot building, which was initially constructed with no tenant on speculation that it would attract jobs and economic development.
Tesla has previously referred to plants producing Megapacks as “Megafactory”. The company already operates one in Lathrop, California, and one in Shanghai, China, where it just started production.
Those factories are set up for a production capacity of 40 GWh worth of Megapacks per year.
It’s not clear if Tesla plans for a similar capacity at this new factory, but the county announced project should result in creating 1,500 jobs.
In addition to the existing building, the project will include the construction of an additional “600,000-square-foot distribution facility with some manufacturing capabilities.”
Unlike its automotive business, Tesla’s energy business has been growing at an impressive pace – although prices and margins have come down last year.
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![Is Genesis taking notes from Porsche? New GV60 Magma caught with the Taycan [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/03/Genesis-GV60-Magma-Porsche-2.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Genesis is gearing up to unleash its alter ego with its upcoming Magma lineup, its debut into the world of high-performance luxury vehicles. First up is the Genesis GV60 Magma, due out later this year. As testing wraps up, the GV60 Magma was spotted alongside none other than the Porsche Taycan.
The first dedicated Genesis EV model, the GV60, will kick off another new chapter for the Korean luxury automaker.
Genesis unveiled the GV60 Magma last March, claiming it will kick off “the brand’s expansion into the realm of high-performance vehicles.” The performance EV includes an improved battery, chassis, and motor for added performance.
The Magma model boasts a wider, lower stance for more control. Other key upgrades include a wider front air intake to help cool the batteries, motor, and brakes. It also includes air curtains to maximize efficiency and an added roof fin channels air to the rear wing, generating downward force.
Genesis upgraded the interior to match the GV60 Magma’s luxurious, sporty design. It includes unique sports car-like bucket seats with exclusive “double-diamond stitching” in the Magma orange and titanium coloring.
Genesis GV60 Magma spotted with the Porsche Taycan
With its official debut coming up, the sporty Genesis GV60 Magma was spotted testing alongside a Porsche Taycan and Hyundai’s IONIQ 5 and IONIQ 6 N models.
Despite the camouflage, the video from CarSpyMedia reveals a few new design elements, like the two-line headlight featured on the updated GV60 model.
Genesis will launch the GV60 Magma later this year in its home market, followed by the US, Europe, and others. Production is scheduled to start in the third quarter of 2025.
Will the Genesis GV60 Magma keep up with the Porsche Taycan or Tesla Model S Plaid? Priced and specs will be revealed closer to launch, but it will sit above the Performance AWD trim, which starts at $69,900 in the US. With up to 429 horsepower and 516 lb-ft of torque, it can hit 0 to 60 mph in 3.7 seconds.
| Horsepower | 0 to 60 mph (seconds) |
Starting Price | |
| Genesis GV60 Performance | 429 | 3.7 | $69,900 |
| Genesis GV60 Magma | ? | ? | ? |
| Porsche Taycan | 402 | 4.5 | $99,400 |
| Porsche Taycan Turbo GT (with Weissach Package) |
1,092 | 2.1 | $230,000 |
| Tesla Model S Plaid | 1,020 | 1.99 | $89,990 |
In comparison, the Porsche Taycan starts at $99,400 with up to 402 hp and a 0 to 60 mph time in 4.5 seconds. The Taycan Turbo GT, equipped with its Weissach package, packs 1,092 hp for a 0 to 60 mph sprint in just 2.1 seconds, but it costs $230,000.
Tesla’s Model S Plaid starts at $79,990 and can accelerate from 0 to 60 mph in 3.1 seconds with 1,020 horsepower. Which performance EV are you choosing?
Source: CarSpyMedia
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