Saudi Press

Saudi Arabia and the world
Sunday, Oct 01, 2023

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.

Related Articles

Saudi Press
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Swedish Embassy in Baghdad Engulfed in Flames Amidst a Firestorm of Protests
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Today, we're unveiling the splendor of one of Saudi Arabia's most exclusive and stunning retreats – the Jeddah Yacht Club
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Muslim Tycoon Asif Aziz Receives Approval for the Transformation of the iconic London Trocadero Landmark into Mosque
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
Israeli Prime Minister Netanyahu Hospitalized Due to Dehydration Amidst Summer Heatwave
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Saudi Arabia Joins the Treaty of Amity and Cooperation in Southeast Asia
The Renowned Crown Prince Camel Festival Set to Return to Taif on Aug. 1
Why Do Tech Executives Support Kennedy Jr.?