OAPEC Secretary General: World Economy Will Fall in Deep Slump without Oil, Gas

Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
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OAPEC Secretary General: World Economy Will Fall in Deep Slump without Oil, Gas

Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)

Jamal Issa Al-Loughani, Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC), predicted that the world would become primitive if oil-producing countries listened to climate activist demands and stopped producing gas and oil.

He said the world will witness major power outages, companies would be forced to close and global trade would come to a halt.

Without fuel, supply chains that primarily rely on trucks, railways and marine shipping will come to a stop, he told Asharq Al-Awsat.

Moreover, this will lead to the collapse of the global health system that relies on oil and gas in operating hospitals and transporting patients. The collapse will extend to the production of medicine, equipment and medical supplies, he added.

Ultimately, the world will fall into a deep global slump, he warned.

He remarked however, that given this bleak outlook, the scenario is highly unlikely to unfold.

“We must stress that there can be no imagining a global economy that is not driven by the main engine that is the oil and gas industry,” he declared.

Oil and gas are the main factors on which economic relations between nations are based, providing millions of jobs across the globe, Al-Loughani said.

He noted, however, the growing number of challenges in developing the oil industry and coordinating energy policies between OAPEC member states. He cited unified efforts to secure the delivery of oil to markets through fair and reasonable conditions and providing the suitable conditions for capital and investors in the petrol industry among members.

This is one of the main goals of OAPEC, he remarked. One of the hurdles facing it, he continued, are misleading calls for reducing investments in oil and gas related to the environment and climate change.

He said there is a great insistence on tying an emissions-free environment to reducing the consumption of oil and gas. These calls omit the fact that producing oil and gas and controlling emissions through clean technologies help reach the goal of net-zero emissions by 2050.

OAPEC has indeed started to implement this in recent years as part of the aim to bolster sustainable energy systems and contribute to the global climate change efforts, Al-Loughani added.

OAPEC was founded by Saudi Arabia, Libya and Kuwait in Beirut in 1968. It is based in Kuwait and its founding was viewed as an Arab accomplishment amid trying conditions that followed the 1967 war.

Energy and emissions

Al-Loughani stressed that the oil and gas industry played a major role in the growth of the global economy in recent decades.

In spite of the pressure it is coming under by some countries that had initially backed it, the industry will certainly continue to play its role in the future, he stated.

He emphasized that OAPEC has started to meet global trends related to reducing carbon emissions.

He noted the constant investment, innovation and development of clean technologies, such as carbon capture and storage.

Al-Loughani remarked however, that demand on oil and gas will continue to remain great in the global energy mix despite the rise in the share of renewable energy, especially solar and wind power.

Oil markets

On the drop in investments in the oil sector after some countries shifted to clean energy, Al-Loughani acknowledged the decline, especially in production and exploration, which will lead to a slowdown in the growth of global reserves.

This in turn may impact overall supplies to meet growing demand and consequently lead to rises in energy prices, he predicted.

He revealed that oil exploration and production investments reached around 397.6 billion dollars in 2023, meaning there is a gap estimated at over 17 percent in investments needed to meet global oil demand until 2045, which is estimated at 480 billion dollars annually, according to OPEC.

So, there is a need to bolster investments in the oil industry overall to avoid jeopardizing global energy security and increase inflation, which will in turn slow down the shift towards a clean sustainable energy system, he urged.

Arab reserves

On the role of Arab countries, specifically Saudi Arabia, in securing oil supplies to the global energy market, he said they are playing a main role to that end given their massive reserves and share of global production.

He stressed that Saudi Arabia constantly strives to ensure the security of oil supplies and provide trusted sources of energy, especially when it comes to economic development, while confronting the challenges of climate change.

This has been demonstrated in Saudi Arabia’s pioneering efforts in founding OPEC+ and ensuring its success. He also cited the precautionary measures taken by the group to support the stability and balance of the global oil market through additional voluntary reductions on production.

Such measures are necessary to achieve sustainable growth in the global economy, he added.

He also noted Saudi Arabia’s cooperation with its partners in the G20 with the aim of achieving common interests and maintaining fair costs for all effective parties in the energy market, from producers, investors and consumers. These efforts were highlighted during the COVID-19 pandemic.



Iraq in Talks with Gulf States on Pipeline Exports beyond Hormuz

Workers carry out maintenance on a pipeline at a gas separation station in the Zubair oil field near Basra (AP). 
Workers carry out maintenance on a pipeline at a gas separation station in the Zubair oil field near Basra (AP). 
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Iraq in Talks with Gulf States on Pipeline Exports beyond Hormuz

Workers carry out maintenance on a pipeline at a gas separation station in the Zubair oil field near Basra (AP). 
Workers carry out maintenance on a pipeline at a gas separation station in the Zubair oil field near Basra (AP). 

Iraq is in talks with Gulf countries to use their pipeline networks to secure alternative oil export routes beyond the Strait of Hormuz, the state oil marketer SOMO said Thursday.

The move is part of an emergency strategy by the oil ministry to tap regional infrastructure and bypass maritime chokepoints, ensuring Iraqi crude continues to reach global markets while offsetting higher transport costs linked to the current crisis.

Ali Nizar al-Shatari, head of the State Organization for Marketing of Oil (SOMO), said the ministry is prioritizing negotiations to access Gulf pipeline systems extending beyond the Strait of Hormuz and into the Arabian Sea, allowing exports to avoid areas of military tension.

“The goal is to secure stable routes that guarantee efficient flows of Iraqi oil at lower transport costs,” Shatari said, adding that Iraq generated about $2 billion in oil revenues in March, up 28 percent from February.

He said SOMO exported around 18 million barrels of crude from Basra, Kirkuk and the Kurdistan region by using all available outlets, including southern ports that operated until early March and northern routes to Türkiye’s Mediterranean port of Ceyhan.

As part of efforts to diversify export options, Shatari revealed that the first shipments of fuel oil and Basra Medium crude successfully reached Syrian ports.

He noted that Iraq had signed a deal to export 50,000 barrels per day via this route, describing cooperation with Syria as “very significant,” with storage and security provided to ensure safe delivery to the port of Baniyas.

The route has proven effective and could become a permanent option after the crisis, he added.

Shatari further noted that the oil ministry is close to completing repairs on the Iraq-Türkiye pipeline, which suffered extensive damage in previous years.

Technical teams have inspected the most difficult terrain, with about 200 kilometers (125 miles) still to be assessed in the coming days before full pumping of Kirkuk crude resumes.

In a notable logistical move, Iraq has begun pumping Basra crude northwards for export via Ceyhan.

Flows started at 170,000 barrels per day and are expected to stabilize between 200,000 and 250,000 bpd, helping offset disrupted southern exports and supply energy-hungry markets in Europe and the Americas.

Shatari said Iraq has benefited from rising global prices by selling Kirkuk crude — a medium-grade oil — at strong premiums.

He also confirmed the reactivation of an agreement with the Kurdistan region to reuse the pipeline through the region to Ceyhan, helping lift total exports to 18 million barrels in March.

This came despite a drop in production in Kurdistan fields to about 200,000 bpd due to security threats, he added.

 

 


World Food Prices Rose in March as Iran War Lifted Energy Costs, FAO Says

 A farmer carries harvested rice at a paddy field in Samahani, Aceh province on April 2, 2026. (AFP)
A farmer carries harvested rice at a paddy field in Samahani, Aceh province on April 2, 2026. (AFP)
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World Food Prices Rose in March as Iran War Lifted Energy Costs, FAO Says

 A farmer carries harvested rice at a paddy field in Samahani, Aceh province on April 2, 2026. (AFP)
A farmer carries harvested rice at a paddy field in Samahani, Aceh province on April 2, 2026. (AFP)

The war in the Middle East has pushed food commodity prices higher due to higher energy and fertilizer costs, the UN's food agency said Friday. 

The UN's Food and Agriculture Organization (FAO) said its Food Price Index, which measures the monthly changes in international prices of a basket of food commodities, had increased 2.4 percent in March from February. 

It was the second rise in a row, which the agency said was largely due to higher energy prices linked to conflict in the Middle East. 

Within the index, the category of vegetable oil saw the sharpest rise, of 5.1 percent over February, as palm oil prices reached their highest point since the middle of 2022, due to effects from spiking crude oil prices, FAO said. 

However, a "broadly comfortable" supply of cereal has cushioned the damaged from the conflict, FAO said. 

"Price rises since the conflict began have been modest, driven mainly by higher oil prices and cushioned by ample global cereal supplies," said FAO Chief Economist Maximo Torero in a statement. 

But he warned that if the conflict goes on beyond 40 days and the high prices on fertilizer continue, "farmers will have to choose: farm the same with fewer inputs, plant less, or switch to less intensive fertilizer crops". 

"Those choices will hit future yields and shape our food supply and commodity prices for the rest of this year and all of the next." 

Disruptions to production and supply chain routes had also introduced "additional uncertainty" into the outlook for wheat and maize, FAO found. 


Turkish Inflation Near 2% Monthly in March, Below Forecasts

A full moon rises behind Galata Tower, in Istanbul, Türkiye, Thursday, April 2, 2026. (AP)
A full moon rises behind Galata Tower, in Istanbul, Türkiye, Thursday, April 2, 2026. (AP)
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Turkish Inflation Near 2% Monthly in March, Below Forecasts

A full moon rises behind Galata Tower, in Istanbul, Türkiye, Thursday, April 2, 2026. (AP)
A full moon rises behind Galata Tower, in Istanbul, Türkiye, Thursday, April 2, 2026. (AP)

Turkish consumer price inflation was 1.94% month-on-month in March, while the annual figure fell to 30.87%, data from the Turkish Statistical Institute showed ‌on Friday.

In ‌a Reuters ‌poll, ⁠monthly inflation was ⁠forecast to be 2.32%, with the annual rate seen at 31.4%, driven by ⁠a rise in ‌fuel prices ‌and weather-related pressures ‌on food inflation.

In ‌February, consumer prices rose 2.96% month-on-month and 31.53% year-on-year, broadly in ‌line with estimates and reinforcing expectations that ⁠the ⁠disinflation process may be stalling.

The data also showed the domestic producer index rose 2.30% month-on-month in March for an annual increase of 28.08%.