OPEC keeps positive stance on oil demand despite global economic risks

OPEC believes that the world will need a lot of oil, even though there are some risks to trade and the economy. This information was disclosed by Haitham al-Ghais, the Secretary General of the organization.

At the 17th technical meeting of the alliance, attended by delegates from OPEC+ countries and select industry experts, participants discussed both the short- and medium-term forecasts for the world oil market, focusing on supply and demand dynamics. The global economy was a key topic, with growth projected at 2.9% for this year and 3.1% by 2026.

According to OPEC officials, the appetite for oil is likely to grow by 1.3 million barrels each day in the present and upcoming years. Nevertheless, a drop in exploration and production costs, resulting from lower fuel prices, is set to hinder the final output.

Experts predict that energy supplies from OPEC+ competitors, including the US, might surge by 800,000 barrels per day by the mid-decade. This figure is 100,000 barrels per day lower than last month's forecast of 900,000 barrels per day.