The world’s oil demand is expected to increase by 3.1 million barrels per day this year, according to OPEC’s revised forecast.
The recent drop in oil prices, according to new OPEC secretary general Haitham Al Ghais, reflects global concern over an economic slowdown and “masks physical market fundamentals,” a Reuters report said.
He blamed the “exaggerated” Chinese economic slowdown concerns for the drop in oil prices. “There is a lot of fear and a lot of speculation and anxiety, and that’s what’s predominantly driving the drop in prices,” he told Reuters.
Al Ghais, however said, he was “very bullish and optimistic about oil demand for the rest of the year.” He expected the demand to pick up from jet fuel usage as more people travel this year.
Speaking about the next OPEC+ meeting on September 5, Al Ghais said the group could cut or add production if necessary.
“It all depends on how things unfold,” he said.
He predicted a slowdown in demand growth in 2023 but said it should not be worse than what has already been experienced in the last two years. .
During the Russia-Ukraine war, supply concerns pushed Brent crude prices close to an all-time high of $147 per barrel in March. Prices have since declined and hit a six-month low below $92 this week.
