Jasem AlBudaiwi, Secretary General of the Gulf Cooperation Council (GCC), praised on Tuesday OPEC’s role in supporting oil market stability.
AlBudaiwi made his remarks as he received OPEC Secretary General Haitham Al Ghais, according to OPEC’s LinkedIn account.
The two men explored possible ways to enhance cooperation between OPEC and the GCC. They also discussed a number of issues related to the energy sector, including energy transitions, the importance of energy security, and the need for continuous investments.
A recent study of the Board of Governors of the Federal Reserve System has concluded that OPEC’s credible decisions and research ensure the oil markets’ stability.
“We find that OPEC communication reduces oil price volatility and prompts market participants to rebalance their positions,” according to the study published on the Banks’ website.
“Our analysis indicates that market participants assess OPEC communications as providing an important signal to the crude oil market,” the study added.
OPEC on Tuesday stuck to its forecast for relatively strong growth in global oil demand in 2024 and 2025 and raised its economic growth forecasts for both years saying there was further upside potential.
In a monthly report, it said world oil demand will rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025. Both forecasts were unchanged from last month.
