Saudi Press

Saudi Arabia and the world
Sunday, Dec 22, 2024

Oil demand set to rise despite global economic headwinds: OAPEC secretary-general

Oil demand set to rise despite global economic headwinds: OAPEC secretary-general

Despite escalating geopolitical tensions and the resulting economic slowdown, global oil demand is expected to increase by 2.3 million barrels per day in 2023, a top official from the Organization of Arab Petroleum Exporting Countries told Independent Arabia.
Jamal Al-Loughani, the recently appointed secretary-general of the organization, based his optimistic outlook on the recovering demand from members of the OECD, as well as China, and India.

He did warn though that global developments will have an impact on the overall growth of the oil sector, as central banks around the world are increasing interest rates to tame rising inflation.

Speaking to journalist Ghaleb Darwich, Al-Loughani said the imbalances created as a result of the Russia-Ukraine conflict continue to recede and the tightening of monetary policies by most central banks is expected to pay off.

Commenting on the move by some countries to withdraw crude from their respective reserves to strike a balance between supply and demand in the oil market, the secretary-general said this strategy may not prove to be very effective in the long run, as ultimately they need to be replenished.

Echoing views expressed by most major oil exporters, the official stressed the need for investment in the oil sector to ensure energy security in the future.

Al-Loughani said the growing geopolitical tensions in Eastern Europe and the related decisions will undoubtedly affect the foundations of the global oil market in terms of demand and supply, which may lead to an increased intervention by EU countries and their allies.

Referring to the price cap on Russian crude, the secretary-general said that it led the Kremlin to cut its production by 500,000 bpd.

He warned such tit-for-tat moves will only deplete strategic reserves — further tightening the market.

The OAPEC official said Saudi Arabia is working hard to support the stability of the oil market, which is necessary to achieve sustainable growth of the global economy.

He said the issue of insufficient investments in the global oil sector continues to pose a threat to future energy security and has led to a slowdown in the growth of oil reserves, due to a lack of exploration and production activities.

Al-Loughani also highlighted the insistence of various European countries and members of the International Energy Agency to reduce the consumption of fossil fuels to cut carbon emissions.

The official said it should be understood that fossil fuels can be used as part of the solution to mitigate the effects of climate change.

A large number of Arab countries are focusing on renewable energy, he said, adding that Saudi Arabia, being the largest oil-producing country, is at the forefront of the clean-energy efforts.

Al-Loughani said the Kingdom has launched the Saudi Green Initiative to achieve net-zero goals and is a pioneer in adopting the concept of a circular carbon economy.

To accelerate the pace of sustainable development and protect the global climate, he added, Riyadh seeks to diversify its energy mix by producing 50 percent electricity using renewable sources by 2030 — thus significantly reducing carbon emissions.

He also cited the Middle East Green Initiative as an example of Saudi Arabia seeking to ensure the region achieves the goal of reducing emissions.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Israeli Military Operations in Gaza, Netanyahu's Corruption Trial, and Global Political Shifts: A Complex Interplay of Geopolitical and Economic Dynamics
Global Developments: Vaccine Controversy, Syrian Rebuilding, Natural Disasters, and Escalating Geopolitical Tensions
Israel's Strategic Maneuvers and U.S. Legal Actions Amidst Syria's Political Upheaval
Global Military Shifts, Gender Inequality, and Economic Alliances: Key Developments in the Post-Assad Era
International Condemnation and Mediation Efforts in Response to Israeli Actions in the Golan Heights Amid Middle Eastern Tensions
Global Tensions and Efforts for Peace: Cross-Cultural Dialogues, Regional Conflicts, and International Diplomacy
Saudi Arabia's Expanding Global Influence: From Water Management Leadership to Cultural and Economic Partnerships
Global Diplomatic Advances: Expanding Judicial, Human Rights, and Geopolitical Partnerships in the Middle East and Beyond
Strengthening UK-Gulf Relations and Addressing Global Challenges: A Diplomatic Overview
Cultural Heritage, Political Change, and Economic Growth: Key Developments Across the Middle East
Key Developments in Middle East Relations, Judicial Reforms, and Energy Partnerships Highlight Saudi Arabia's Vision 2030 Ambitions
Economic Growth and Innovation Drive Middle Eastern Developments: A Look at Egypt's Treasury Bill Success, Saudi Arabia's Expanding US Relations, Sustainability Initiatives, and Vision 2030 Achievements
UK Considers Delisting HTS Amid Complex Regional Dynamics and Global Security Implications
Global Developments: Saudi Arabia Embraces Cashless Innovation, Syria's Human Rights Struggles, Trump's Controversial Plans, Ghana's Leadership Shift, South Korea's Political Crisis, and Saudi-Japan Economic Partnership
Political Turmoil and Economic Ambitions: Macron's Coalition Efforts, MENA Startup Surge, and Global Initiatives in Integration and Innovation
Turkiye Advocates for Syrian Unity Amid Regional Turmoil; Israeli-Lebanese Tensions and Iran's Strategic Moves Highlight Middle Eastern Shifts
Kanlaon Volcano Erupts in the Philippines and Disrupts in the Middle East: Political Shifts, Oil Market Ripples, and Regional Instability
Global Turmoil: Taiwan Enhances Defenses, Indian Schools Face Bomb Hoaxes, and Middle East Conflicts Escalate
Global Political Shifts: From Trump's Strategic Appointments to Middle Eastern Power Realignments
Escalating Conflicts and Strategic Shifts Across the Middle East and North Africa
Syria's Historic Transition: The Fall of Assad and New Geopolitical Dynamics
Global Shifts: Saudi-UK Trade Goals, Syrian Regime Change, and U.S. Post-Assad Strategy
Saudi Arabia's Multi-Faceted Strategy: Embracing Sustainability, Tourism Excellence, and Regional Stability
Saudi Arabia Advances Transparency and Partnerships in Vision 2030 Push
Saudi Arabia Navigates Post-Assad Syria, Fossil Discoveries, and Economic Growth Amidst Regional Turmoil
Geopolitical Maneuvers and Sustainable Developments: Israel's Buffer Zone Tactics, Saudi Arabia's Vision 2030 Innovations, and Egypt's Aviation Advancements
NASA's Artemis II Delayed to 2026, While Saudi Arabia Advances Cultural and Humanitarian Initiatives
Key Global Developments: Saudi Oil Price Adjustments, Surging Makkah Tourism, Syrian Conflict Shifts, and Saudi Pro League Highlights
Global Shifts: Diplomatic Talks, Economic Growth, and Regional Upheavals Reshape the Geopolitical Landscape
Insurgents Enter Damascus as Assad's Regime Faces Historic Collapse
Global Political Shifts: Defense Enhancements, Diplomatic Missions, and Civic Engagement Initiatives
Diplomatic Efforts Highlight Regional Tensions and Cooperation at IISS Manama Dialogue Amidst Humanitarian and Natural Crises
From Gulf Diplomacy to Global Resilience: Key Developments Shaping Regional and International Landscapes
Saudi Arabia Intensifies Immigration Control, Strengthens Diplomatic and Cultural Engagements
Global Political Tensions and Ambitious Developments Amid Regional Security Challenges
Philippines Celebrates Extensive Christmas Season; Saudi Innovations in Maritime Safety, Tourism, and Global Diplomacy; Healthcare Advancements and Regional Tensions Also Spotlighted
PIA Returns to European Skies Amid Saudi Arabia's Vision 2030 and COP16 Initiatives
Global Tensions Rise: Strategic Wins, Diplomatic Strains, and Humanitarian Crises Test Resilience
Global Political Turmoil and Humanitarian Efforts: A Snapshot of International Developments
Tensions and Triumphs: A Global Overview of Diplomatic Efforts, Geological Risks, Corporate Security, Military DEI Debates, Middle Eastern Conflicts, and Notre Dame's Resilient Reopening
Global Developments: Ghana's Election, UK's Smuggling Crackdown, Syrian Conflict Escalation, and US Supreme Court's Jurisdictional Case
Global Conflicts and Humanitarian Crises: A Snapshot of Recent International Developments
Saudi Arabia's Innovations in Marine Science, Arts, Film, Technology, Volunteerism, and Medical Education
Iran's Space Launch Fuels Western Concerns Amid Global Political Unrest
Riyadh's Cultural, Pharmaceutical, and Diplomatic Milestones: Noor Talks, CPHI Middle East, and Regional Developments
Key Diplomatic and Cultural Developments: Leadership Changes, Heritage Recognitions, and Strategic Partnerships in a Turbulent Global Context
Global Developments: Border Closures, Heritage Restoration, Leadership Appointments, Climate Challenges, Oil Market Dynamics, and Saudi Arabia's Vision 2030
Global Partnerships and Initiatives Defining Saudi Arabia and Regional Dynamics in 2024
Global Developments: Sadiq Khan's Upcoming Knighthood, Punjab Farmers' Protests, Mary Jane Veloso's Repatriation, China's Warning to Taiwan, Hong Kong's National Security Law, and Saudi Arabia's Real Estate Boom
Iran's Satellite Launch Escalates Western Concerns Amid Global Geopolitical Tensions
×