The Secretary General of OPEC expresses optimism about the outlook for oil demand in 2023
He stressed that the decline in oil prices reflects concerns about the economy.
The new Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) told Reuters that the recent decline in oil prices reflects fears of an economic slowdown and masks actual market fundamentals, while expressing a relatively optimistic view of the market outlook for 2023 as the world grapples with rising inflation.
Haitham Al-Ghais, who took office on August 1, indicated that the demand for oil is strong in the actual market, and that concerns about the slowdown in the Chinese economy are exaggerated, adding that demand is likely to find support from the use of jet fuel with increased travel.
Al-Ghais added that OPEC is keen to extend the agreement with Russia and producers from outside it.
The OPEC Secretary-General said it was too early to say what OPEC+ would do at the Sept. 5 meeting, as it could cut or increase production if necessary.
Compensating for Russian production is not easy, and the organization’s ability to meet oil demand will be a difficult task without addressing the issue of lack of investment in the sector, according to Al Ghais.
