Saudi Press

Saudi Arabia and the world
Wednesday, Jun 19, 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
Iran Sentences Nobel Laureate Narges Mohammadi to 1-Year Prison Term for Propaganda
Good day, everyone! We've got a lively mix of stories today, from financial recoveries and international sanctions to...
Giorgia Meloni Comments on Israel's Conflict and EU's Stand on Ukraine Loan
Israel Plans Tactical Pause For Aid Deliveries in South Gaza
Giorgia Meloni Comments on Israel's Conflict and EU's Stand on Ukraine Loan
Over 1.5 Million Pilgrims Arrive in Mina for Hajj
Japan Considers Sanctions on UAE-Based Entities for Aiding Russia
Global Headlines: Pope’s Plea on AI, Tensions in Ukraine, and Japan’s Sanction Strategy
Houthi Missile Attack Severely Injures Sailor on Cargo Ship
Iran Expands Nuclear Capabilities: IAEA Report
Saudi Hospitality Sector to Grow by 7.5% Annually Until 2028
Ceer and Hyundai Transys Sign $2 Billion Deal for EV Drive Systems
Israel Rescues Four Hostages from Gaza
Turkish Student Arrested for Using AI to Cheat in University Exam
Saudi Arabia Dominates Global Construction with $1.5 Trillion Pipeline
Fortis Expands Fintech Solutions to Saudi Arabia's SME Sector
Saudi Arabia's Industry 4.0 Initiative and Vision 2030
Saudi Arabia's Booming Automotive Market
"Saudi Stock Market Recap: Tadawul Dips While Nomu Surges"
"Saudi Arabia's Economic Growth Soars: Gross Fixed Capital Formation Surges by 7.9%"
"Saudi Arabia Tops Global Mining Investment Rankings: A New Era of Mineral Prosperity"
"Saudi Arabia's Record-Breaking Year in Travel & Tourism: A Global Tourism Hotspot in the Making"
Saudi Foreign Minister Attends BRICS Ministerial Meeting in Russia
"Saudi Arabia's New Workplace Safety Measures: A Summer of Shade for Private Sector Workers"
"King Salman Welcomes Over 2,300 Pilgrims for Hajj, Including 1,000 Palestinians"
"A Miraculous Birth at the Heart of the Hajj: A Nigerian Pilgrim Gives Birth in Makkah"
"Camel Culture: A Comparative Study Across Three Countries"
"Oil Prices on the Rise: Goldman Sachs Predicts a Third-Quarter Surge"
"Saudi Arabia's Finance Sector Thrives: A 13% Asset Surge in 2023"
Egypt's Inflation Rate Drops Surprisingly in May
"Saudi Aramco Remains Top Company in Forbes Middle East's Top 100 List for 2024"
"Saudi Arabia's Maritime Sector Soars: A 8.09% Increase in Cargo Handling"
"Qatar's Export Growth Soars in Q1 2024: A 6% Increase in Private Sector Exports"
"Saudi Arabia Achieves Tourism Milestones: A Giant Leap Towards Global Leadership"
"Saudi Arabia's Mining Sector Soars: A New Industrial Pillar"
"Saudi Arabia's Industrial Growth: A Boost in Manufacturing and Mining Sectors"
"Indonesia Launches TB Vaccine Trials to Combat Soaring Cases and Boost Economic Growth"
Tragic Attack in Indian-Controlled Kashmir: Nine Killed, Thirty-Three Injured
"India's Record-Breaking Heatwave: A Warning from the Weather Experts"
"Urgent Update: Devastating Floods and Landslides in Northern Vietnam"
"IOC President Assures Unwavering Support for Paris 2024 Amidst French Political Upheaval"
"Breaking News: Paris Chanel Store Ram-Raid and Fire"
"Ukraine's Reconstruction Chief Resigns: A Decade of Service and Frustration"
Tragic Attack in Yargoje, Nigeria: Over 50 Lives Lost and Many Kidnapped
"Violent Clash in Central Somalia: 55 Dead and 155 Injured"
Urgent Appeal for Peaceful Dialogue: Australia's Prime Minister Addresses Israel-Palestine Tensions
"Revival in Mosul's Old City: A Journey from Daesh's Stronghold to Cultural Renaissance"
"U.S. Secretary of State Blinken Pursues Ceasefire in Gaza"
"UAE Cracks Down on Unwanted Cold Calls: New Regulations Announced"
Turkish Foreign Minister Hakan Fidan Meets Hamas Leader Ismail Haniyeh at GCC High-Level Strategic Dialogue in Doha
×