The oil market is facing some challenges, but the demand for oil will not peak, as the global economy continues to grow. “Yes, there are certain obstacles, but the picture is not as negative as some try to show it. There will be no peak in demand. We won't have it because the world continues to grow,'' OPEC Secretary General Haitham al-Ghais said, speaking at the ADIPEC energy conference.
Gais noted that there has been a lot of talk lately about slowing economic growth, but the real data tells a different story. For example, the US economy grew by 2.8% in the third quarter. "Let me ask the audience, do you remember the last time this kind of data came out of the United States? “Everything is fine with the US economy”, he said.
The Chinese economy should not be overlooked either. "Everyone is talking about a slowdown in China. The country's economy is growing by almost 5%. I think people are just used to 9-10% growth, but 5% for an economy the size of China is significant,” added the OPEC secretary general.
OPEC also has a positive outlook on oil demand both in the long and short term, Al Ghais continued. “A few years ago, many said that oil demand would peak in 2030; now demand will peak in 2035. I'm sure in a few years they will say that oil demand will peak in 2040. etc. “It defies logic,”, he concluded.