OPEC+ expects global economic growth despite challenges and ‎pressures

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 to enhance demand for fuel despite macroeconomic challenges, including high inflation and interest rates.

According to Reuters, 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 slower than expected, will achieve growth ranging between 4.5% to five years, 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 imports of crude oil 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 lead to reducing demand for oil and exacerbating the decline in prices.

However, Al-Ghais indicated 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 by more than two million barrels per day differ 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.