• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 days The United States produced more crude oil than any nation, at any time.
  • 9 days e-truck insanity
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 8 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 7 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 12 days Bankruptcy in the Industry
North Sea Oil and Gas Firms Continue Drilling Despite Climate Goals

North Sea Oil and Gas Firms Continue Drilling Despite Climate Goals

Major North Sea oil-producing countries…

Oil Moves Higher on Fuel Inventory Draws

Oil Moves Higher on Fuel Inventory Draws

WTI crude rallied above $86…

Megamerger Mania Set To Shake Up Latin America’s Oil and Gas Industry

Megamerger Mania Set To Shake Up Latin America’s Oil and Gas Industry

Enauta's strategic acquisitions and proposed…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

OPEC Sees Robust Oil Demand Despite Sell-Off

  • OPEC Secretary General al-Ghais: recent sell-off in oil was driven by fear.
  • OPEC: crude oil fundamentals remain strong.
  • Al-Ghais: Fears of a major Chinese economic slowdown are overblown.

Global oil demand is still robust and will be such through the end of this year, OPEC Secretary General Haitham al-Ghais told Reuters, noting that the recent sell-off in oil doesn't reflect fundamentals and is driven by fear.

"We still feel very bullish on demand and very optimistic on demand for the rest of this year," al-Ghais told Reuters in an interview published on Thursday.   

Oil prices dropped earlier this month to their lowest level in six months, to the level just before the Russian invasion of Ukraine. The move lower was driven by fears of recession and concerns about the health of the Chinese economy and was further exacerbated by thin trading volumes as traders and speculators are either on vacation or not trading oil amid heightened volatility. 

OPEC, however, sees robust demand, according to its new secretary general.

"There is a lot of speculation and anxiety, and that's what's predominantly driving the drop in prices," al-Ghais told Reuters.

"Whereas in the physical market we see things much differently. Demand is still robust," OPEC's chief added. 

Fears of a major Chinese economic slowdown are overblown, according to al-Ghais.

OPEC did revise down last week its global oil demand growth estimate for this year by 260,000 barrels per day (bpd) but said in its closely-watched Monthly Oil Market Report (MOMR) it still expects "healthy growth".

OPEC sees world oil demand growing by 3.1 million bpd this year, down by 260,000 bpd from last month's growth assessment of 3.36 million bpd growth.

Demand is still expected to show "healthy growth of 3.1 mb/d, including the recently observed trend of burning more crude in power generation," OPEC said. This year, total oil demand is expected to average around 100 million bpd.

OPEC left its 2023 demand growth estimate unchanged from the previous report at 2.7 million bpd, with total 2023 oil demand expected to reach 102.72 million bpd.

"In 2023, expectations for healthy global economic growth, combined with expected improvements in the containment of COVID-19 in China, are expected to boost consumption of oil," OPEC said last week.     


By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News