OPEC projects very strong third-quarter oil demand: Al Ghais

Haitham Al Ghais, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC)

OPEC expects very strong oil demand in the third quarter and a tight supply-demand balance in the following months, the organization's Secretary-General Haitham Al Ghais, stated.

On the sidelines of an OPEC symposium held last week in Vienna, Al-Ghais added that the organization expects demand to grow by 1.3 million barrels per day (bpd) annually in 2025, thanks to a strong global economy, according to the Russian news agency RIA Novosti.

Al-Ghais added that with supply levels being close to demand, resulting in limited margin of market balance, these conditions are among the key factors driving the G8 to re-inject oil into the market.

Despite these positive expectations for short-term demand, OPEC last week reduced its estimates for global oil demand over the coming four years, in light of slowing economic growth in China. However, it raised its forecast for long-term demand, supported by increased consumption in developing countries.