OPEC has an optimistic view on global oil demand

The Organization of the Petroleum Exporting Countries (OPEC) has a very optimistic view of global oil demand. This view is both in the short and long term.

„There are some challenges. The big picture is not as negative as some people claim.,” Haitham Al Ghais said. The so-called peak in oil demand will not happen as long as the world economy continues to grow.

Ghais also said OPEC has an optimistic view of the world economy. He mentioned in particular the economic growth in the US and China. A 5% advance is a very good one for a country the size of China. In previous years the Chinese economy registered increases of up to 10% per year.

Ghais also reiterated that oil demand will not reach the so-called peak level.

„This reminds me of the discussions about the peak of the offer many years ago. This peak in supply has never happened and neither will the peak in demand.”, said Haitham Al Ghais.

OPEC has an optimistic view on global oil demand

OPEC and its allies, a group collectively known as OPEC+, have reduced oil supply to support market prices.

Ghais made the remarks a day after OPEC said it had decided to delay an oil production increase that was planned to take place in December by a month. He cited downward pressures on the oil market in support of this decision, pressures stemming from weak demand and increased oil supply from outside the group.

Photo source: https://www.opec.org/