OPEC Forecasts 23% Surge in Energy Demand by 2045

Snapshot from the G20 energy ministers meeting in India (G20's Twitter page)
Snapshot from the G20 energy ministers meeting in India (G20's Twitter page)
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OPEC Forecasts 23% Surge in Energy Demand by 2045

Snapshot from the G20 energy ministers meeting in India (G20's Twitter page)
Snapshot from the G20 energy ministers meeting in India (G20's Twitter page)

Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) Haitham Al Ghais predicted a 23% surge in energy demand by the year 2045. This projection considers the anticipated growth in the global economy, as well as the expected population increase.

During a meeting of G20 energy ministers in India, Al Ghais emphasized the necessity of investing in energy transitions with a comprehensive approach that benefits all people, all types of fuels, and all technologies.

He further stated that OPEC is eager to closely collaborate with the G20 to enhance a sustainable energy future for the world.

In response to the global economic uncertainty and the slowdown in China’s economy, which is the world’s largest oil importer and the second-largest economy, the OPEC+ alliance has decided to reduce its oil production.

UAE Energy Minister Suhail Al Mazroui expressed that OPEC+ is taking adequate measures to stabilize the oil market.

“We believe that what we are doing in OPEC+ is sufficient to address the issue of supply and demand,” said Al Mazroui.

“We are acting on behalf of all producers worldwide and in the interest of achieving a balance between supply and demand for all consumers as well,” he added.

Al Mazroui also emphasized the pivotal role of OPEC+, responsible for nearly 40% of global crude oil production, in managing the energy market for the benefit of both producers and consumers.

The OPEC+ alliance includes the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia.

On his part, the Executive Director of the International Energy Agency, Fatih Birol, affirmed that the agency will revise its projections for global oil demand growth based on economic growth expectations in China and some other countries.



Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions
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Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil prices climbed on Tuesday reversing earlier declines, as fears of tighter Russian and Iranian supply due to escalating Western sanctions lent support.

Brent futures were up 61 cents, or 0.80%, to $76.91 a barrel at 1119 GMT, while US West Texas Intermediate (WTI) crude climbed 46 cents, or 0.63%, to $74.02.

It seems market participants have started to price in some small supply disruption risks on Iranian crude exports to China, said UBS analyst Giovanni Staunovo.

In China, Shandong Port Group issued a notice on Monday banning US sanctioned oil vessels from its network of ports, according to three traders, potentially restricting blacklisted vessels from major energy terminals on China's east coast.

Shandong Port Group oversees major ports on China's east coast, including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

Meanwhile, cold weather in the US and Europe has boosted heating oil demand, providing further support for prices.

However, oil price gains were capped by global economic data.

Euro zone inflation

accelerated

in December, an unwelcome but anticipated blip that is unlikely to derail further interest rate cuts from the European Central Bank.

"Higher inflation in Germany raised suggestions that the ECB may not be able to cut rates as fast as hoped across the Eurozone, while US manufactured good orders fell in November," Ashley Kelty, an analyst at Panmure Liberum said.

Technical indicators for oil futures are now in overbought territory, and sellers are keen to step in once again to take advantage of the strength, tempering additional price advances, said Harry Tchilinguirian, head of research at Onyx Capital Group.

Market participants are waiting for more data this week, such as the US December non-farm payrolls report on Friday, for clues on US interest rate policy and the oil demand outlook.