OPEC Secretary General says group is very positive on short and long-term oil demand

Record ID: 1853950

  • Title: OPEC Secretary General says group is very positive on short and long-term oil demand
  • Date: 4th November 2024
  • Summary: DERRY, NEW HAMPSHIRE, UNITED STATES (FILE - JANUARY 23, 2024) (REUTERS) PEOPLE CHECKING IN TO VOTE AT POLLING LOCATION COLUMBIA, SOUTH CAROLINA, UNITED STATES (FILE - FEBRUARY 24, 2024) (REUTERS) PEOPLE CASTING VOTE AT VOTING BOOTHS DURING SOUTH CAROLINA PRIMARY FORMER U.S. PRESIDENT, DONALD TRUMP GREETING OFFICIALS ON STAGE AT EVENT FOLLOWING HIS VICTORY IN THE SOUTH CARO
  • Embargoed: 18th November 2024 13:18
  • Keywords: ADIPEC Abu Dhabi Energy OPEC UAE
  • Location: ABU DHABI, UAE
  • City: ABU DHABI, UAE
  • Country: UAE
  • Topics: Economic Events,Middle East
  • Reuters ID: LVA00H692404112024RP1
  • Aspect Ratio: 16:9
  • Story Text: The Organization of Petroleum Exporting Countries is very positive on demand for oil in both the short and long term, Secretary General Haitham Al Ghais said at an energy industry event in Abu Dhabi on Monday (November 4).
    "There are some challenges, but the picture is not as negative as some make it sound," he said adding that 'peak demand' would not happen as the world continues to grow.
    OPEC+ oil supply cuts and recent efforts to unwind them have increased volatility in energy markets and hampered investment in new production, the CEO of Italian energy company Eni, Claudio Descalzi said on Monday.
    Descalzi added that he expected high volatility in the energy markets experienced in recent years to extend into 2025.
    Eight members of OPEC+, which groups the Organization of the Petroleum Exporting Countries plus Russia and other allies, agreed on Sunday (November 3) to delay a planned December oil output increase by one month due to weak demand in China and rising supplies.
    Oil prices were up by over 2.8% by 1216 GMT on Monday.
    "As soon as (OPEC) say we're going to release some production, the price went down immediately. Now they say we postpone until the end of the year, and that has made a big impact on the market... the volatile situation is not good," Descalzi said.
    "Everybody says we need energy, but with this kind of volatile situation, and this volatility is not really helping investment" in new oil and gas production, he said.
    Escalating tensions between Israel and Iran since last October have stoked concerns over supply disruptions in the Gulf, which produces and exports around 20% of the world's oil and gas, pushing oil prices higher.
    Turning to the upcoming U.S. presidential elections, BP BP.L CEO Murray Auchincloss said that the biggest challenge the United States faces is regulatory reform to allow permits for new investments in energy, particularly renewables and low-carbon projects.
    Auchincloss also said that the world would require a lot of new investment in oil and gas in order to maintain supplies, regardless of a possible settling of demand in the coming years.
    (Production: Abir Al Ahmar, Abdelhadi Ramahi)
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