OPEC+ expects global economic growth despite the challenges

Haitham Al-Ghais, Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), said on Tuesday that the organization expects the global economy to grow and fuel demand to increase despite macroeconomic challenges, including high inflation and interest rates.

He said at the Argus European Crude Oil Conference on Tuesday that the United States is performing well while Europe is suffering, pointing to estimates that even China, which emerged from the lockdown more slowly than expected, will achieve growth of between 4.5 and 5 percent, exceeding Europe.

He continued, “When we talk about demand and our future outlook, perhaps in the short to medium term, we still see a healthy global economy growing despite all the challenges and pressures.”

Official data showed on Tuesday that China’s crude oil imports rose in October on both an annual and monthly basis, while its total exports shrank faster than expected.

Expectations of crude cuts by refineries in China between November and December may reduce demand for oil and exacerbate the decline in prices.

However, Al Ghais pointed out that demand growth in India and other regions in Asia appears positive, and the global aviation sector is expected to continue to support demand for fuel.

“In the aviation sector, there is still room for improvement, so we are very optimistic about demand,” he said.

OPEC’s expectations for demand growth in 2024 differ by more than two million barrels per day from the International Energy Agency’s expectations of growth of 880 thousand barrels per day.

OPEC and allies outside it, led by Russia, within the alliance known as OPEC+, will hold a meeting later this month to determine production policy.

Al-Ghais said that OPEC+ was proactive and took preventive measures to achieve stability in the crude market.