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Saudi Minister of Energy: Global Demand for Petrochemicals to Continue to Grow

Saudi Energy Minister Prince Abdulaziz bin Salman speaking at a former conference (File photo: Reuters)
Saudi Energy Minister Prince Abdulaziz bin Salman speaking at a former conference (File photo: Reuters)
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Saudi Minister of Energy: Global Demand for Petrochemicals to Continue to Grow

Saudi Energy Minister Prince Abdulaziz bin Salman speaking at a former conference (File photo: Reuters)
Saudi Energy Minister Prince Abdulaziz bin Salman speaking at a former conference (File photo: Reuters)

Saudi Energy Minister Prince Abdulaziz bin Salman expected global demand for petrochemicals to grow rapidly, bolstering demand for hydrocarbons as raw materials.

Addressing the 17th Annual GPCA Forum, the Saudi Minister stated that those discussing "the energy transition must accept the reality of today and the future.

Prince Abdulaziz explained that the rapid growth of the petrochemical sector will necessarily be reflected in the volume of demand for hydrocarbons as raw materials.

In his speech, Prince Abdulaziz referred to market and analyst reports, which expect the global petrochemical sector to grow by more than 50 percent to about 1.2 trillion tons annually by 2040.

"Petrochemicals are here to stay, and the hydrocarbon sector will continue to generate income and generate money for investors. So I would like to ask our friends talking about transformation to live with the data in their hands and the facts before them today and for decades to come," the minister said.

He pointed out that petrochemicals and their derivatives constitute about 50 percent of the components of our cars, including electric ones.

The Gulf Petrochemicals and Chemicals Association (GPCA) themed "Mobilizing Chemistry for Impactful Transformation" is held in Doha and hosted by QatarEnergy.

The activities of the Forum kicked off on Sunday, and we will discuss the chemical industry's role in sustainability and the transition to clean energy.

Minister of State for Energy Affairs in Qatar and President and CEO of Qatar Energy Company Saad bin Sherida al-Kaabi inaugurated the Forum.

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Russia's Central Bank Holds Off on Interest Rate Hike

People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)
People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)
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Russia's Central Bank Holds Off on Interest Rate Hike

People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)
People skate at an ice rink installed at the Red Square decorated for the New Year and Christmas festivities, with the St. Basil's Cathedral, left, and the Kremlin, right, in the background in Moscow, Russia, Friday, Dec. 20, 2024. (AP Photo/Alexander Zemlianichenko)

Russia's central bank has left its benchmark interest rate at 21%, holding off on further increases as it struggles to snuff out inflation fueled by the government's spending on the war against Ukraine.
The decision comes amid criticism from influential business figures, including tycoons close to the Kremlin, that high rates are putting the brakes on business activity and the economy.
According to The Associated Press, the central bank said in a statement that credit conditions had tightened “more than envisaged” by the October rate hike that brought the benchmark to its current record level.
The bank said it would assess the need for any future increases at its next meeting and that inflation was expected to fall to an annual 4% next year from its current 9.5%
Factories are running three shifts making everything from vehicles to clothing for the military, while a labor shortage is driving up wages and fat enlistment bonuses are putting more rubles in people's bank accounts to spend. All that is driving up prices.
On top of that, the weakening Russian ruble raises the prices of imported goods like cars and consumer electronics from China, which has become Russia's biggest trade partner since Western sanctions disrupted economic relations with Europe and the US.
High rates can dampen inflation but also make it more expensive for businesses to get the credit they need to operate and invest.
Critics of the central bank rates and its Governor Elvira Nabiullina have included Sergei Chemezov, the head of state-controlled defense and technology conglomerate Rostec, and steel magnate Alexei Mordashov.
Russian President Vladimir Putin opened his annual news conference on Thursday by saying the economy is on track to grow by nearly 4% this year and that while inflation is “an alarming sign," wages have risen at the same rate and that "on the whole, this situation is stable and secure.”
He acknowledged there had been criticism of the central bank, saying that “some experts believe that the Central Bank could have been more effective and could have started using certain instruments earlier.”
Nabiullina said in November that while the economy is growing, “the rise in prices for the vast majority of goods and services shows that demand is outrunning the expansion of economic capacity and the economy’s potential.”
Russia's military spending is enabled by oil exports, which have shifted from Europe to new customers in India and China who aren't observing sanctions such as a $60 per barrel price cap on Russian oil sales.