**: Global Market Broadcast.
The Organization of the Petroleum Exporting Countries (OPEC) said that global oil demand will continue to grow strongly this year, and signs of peak consumption do not appear to appear.
We are seeing positive signs of a good correction in some parts of the global economy," OPEC Secretary-General Haitham Al Ghais said at the World ** Summit in Dubai on Tuesday. "I think it's probably still a long way off to talk about a peak in oil demand. ”
Oil demand will peak in the coming years as countries switch to renewable energy and electric vehicles to avoid damaging climate change, several influential people believe the demand for oil will peak in the coming years. The Paris-based International Energy Agency (IEA) is expected to peak by the end of the decade. OPEC is a notable exception.
Al Ghais said that "we still feel very strong" for China and that India expects "phenomenal economic growth". OPEC expects global oil demand to increase by more than 2 million barrels per day this year, continuing healthy growth in 2023, he said.
Oil demand has surged over the past few years with post-pandemic demand for transportation fuels**. However, OPEC and its allies have been ramping up production cuts, with consumption growth being met by ** elsewhere, resulting in oil prices in the London market remaining around $80 a barrel.
We see high production in Guyana, Brazil and Canada," said Al Ghais. U.S. production growth may be slowing, but he warned that the U.S. oil industry has proven "resilient, and we continue to see shale oil production surprise year after year." ”
Ah Ghais said OPEC+ would "continue to be preemptive and proactive" in this environment.