Oil demand in the US and Europe remains weak but the economic crisis will not lead to a permanent reduction in global consumption, the head of Saudi Arabia's state oil company said in an interview with a US television station.

'It will take time to make up for the millions of barrels of lost demand that we have experienced,' Saudi Aramco CEO Khalid Al-Falih said in an interview with Nightly Business Report to air on Monday on PBS, adding, 'But ultimately, it will come.'

The economic crisis has hit global fuel consumption, helping to push crude oil prices off record highs over $147 a barrel struck in July 2008 to below $33 a barrel in December.

Oil prices have since recovered, settling near $67 a barrel on Monday for US crude, supported by expectations a turnaround in the economy could lift fuel demand.

Falih said demand in some emerging markets was already showing signs of recovering.

'Oil demand continues to be very sluggish in the West, in the US in North America and Europe,' he said in the interview, according to a transcript of the interview provided to Reuters.

'We see an uptick in China but not significant to offset demand loss that we saw with economic and financial crisis the last year or so.'

Falih said that the giant oil producer Saudi Arabia had been concerned by the record spike in crude prices in 2008, and added prices above $70 to $80 a barrel were needed to finance projects in the Gulf of Mexico, offshore Brazil and West Africa.

'So we believe there is a happy medium above the prices we have seen but certainly below the feverish prices we saw last year where consumers will not be hurt but producers and investors will invest for the capital investments that will be required to bring energy supplies up and to sustain existing supplies as well,' he said.

When asked about US government initiatives to help decrease the nation's dependency on oil, Falih said it would likely take decades for the United States or any other developed country to significantly shift its energy mix.

'I don't dispute the need to start responsibly putting resources especially science and technology to find technical solutions,' Falih said.

'But I believe political pronouncements about shifting away from oil are counterproductive,” he added. – Reuters