China, India Demand to Spur Oil Prices: Saudi Aramco

Saudi Aramco said crude prices may end the year as high as US$82 a barrel because of demand from China and India. "The prospect is good," Mohamed Daoudi, head of research and technology at Aramco Overseas Co. B.V., said on Monday in an interview in Stavanger, Norway. "There will be a need for more oil. You see India and China and the needs that are required because the developments there are huge. Most of Saudi Aramco's exports go to that region."

Crude fell on Tuesday to the lowest price in seven weeks as investors sought the relative safety of the dollar over the euro before a report that may show US home sales slumped in July. US crude supplies probably increased last week, while distillate fuel stockpiles may hit the highest in 27 years.World oil prices slumped on Tuesday, with New York crude hitting an 11-week low under US$72 on rising concerns about a weak economic recovery, analysts said.

New York's main contract, light sweet crude for October delivery, dropped to US$71.45 - the lowest since 7 June 2010. It later pulled back slightly to stand at US$72.06 - down US$1.04 compared with Monday's close. Brent North Sea crude for October was down US$1.01 at US$72.61 a barrel in late London trade.

"The challenge for Saudi Aramco now, as well as the future, is for partnerships in technology development," Daoudi said. "As far as oil refining, oil exploration and production goes, Saudi Aramco is a leader in the world in terms of know- how. All they want to do now is find partners and develop things together, particularly on technology development."- Zawya