OPEC remains optimistic about global oil demand growth

Saudi Arabia-led OPEC+ group remains "generally optimistic” about global oil demand growth in 2025 and 2026, despite ongoing challenges to trade and the broader economy, its secretary general Haitham Al Ghais said yesterday.

IMAGE: OPEC's flag. Getty Images

Al Ghais, during the opening remarks of the 17th technical meeting of the OPEC+ nations included in the ‘Charter of Cooperation’ (CoC), said that the group expects global oil demand to grow by 1.3 million b/d in both 2025 and 2026.

Oil demand will “remain generally optimistic, despite the recent global economic developments with global economic growth this year forecast at 2.9%, while 2026 is expected to see growth of 3.1%,” he said.

The meeting focused on short-to medium-term outlook of the global oil market, including demand, supply and trade, as well as the global economy, the OPEC Secretariat said.

However, analysts expect Brent crude’s price to decline this year amid concerns about oversupply in the global oil market and OPEC+'s decision to gradually unwind production cuts.

“Oil is set to fall further this year, given the uncertainty over demand and the OPEC+ decision to increase output,” ING Bank’s head of commodity strategy, Warren Patterson said, adding that the oil market is on a “wild ride.”

By Aparupa Mazumder

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