Moscow: OPEC, which along with its allies is ramping up oil output, expects “very strong” oil demand in the third quarter and a tight supply-demand balance in the following months, its secretary general said, according to a Russian media report.
The eight members of the OPEC+ producer group, comprising the Organization of the Petroleum Exporting Countries and allies including Russia, are unwinding years of cuts that had been aimed at supporting the market.
Five sources told Reuters that OPEC+ oil producers are set to approve another big output boost for September.
Russia’s RIA news agency quoted Haitham Al Ghais on Monday as telling journalists on the sidelines of last week’s OPEC seminar in Vienna that the organisation expected demand growth of 1.3 million barrels per day year on year in 2025 due to a strong global economy.
“And that means we are seeing, especially in the third quarter, very strong demand growth,” he said, according to the report.
“In the fourth quarter also we’re seeing good demand growth, and the balances will be tight. And this is one of the main fundamental factors that is leading for the group of eight countries to bring barrels back to the market,” he added.
Al Ghais’ comments come as OPEC trimmed its global oil demand forecasts for the next four years last week on slowing Chinese growth, even as it lifted its longer-term view based on rising consumption in the developing world.
Global demand will average 105 million barrels per day this year, OPEC said in its 2025 World Oil Outlook published on Thursday. It expects demand to grow to average 106.3 million bpd in 2026 and then climb to 111.6 million bpd in 2029. (Reporting by Olesya Astakhova and Vladimir Soldatkin; Editing by Joe Bavier)
