Davos-January 17, 2023

It is likely that Chinese demand will increase demand

OPEC Secretary General Haitham Al-Ghais predicted that the lifting of Corona restrictions in China will stimulate oil demand during the current year ،

On the sidelines of the Davos 2023 forum, Al-Ghais said that oil demand is still growing despite the economic pressures, explaining that OPEC is watching the signs of recession in many developed countries with caution.

Al-Ghais added that demand from India and China may offset the expected contraction from developed countries, stressing the importance of China and India in oil demand.

"Indicators indicate that the Chinese government is granting new import licenses, and this is a positive indicator of the recovery of oil demand in China, and new refineries are being announced in China, one of them with a capacity of 400 thousand barrels/day in China,"he said.

He continued: the volumes of imported oil in China during December are higher than the volumes in November.

A Bloomberg survey had predicted that China's oil consumption would set a record this year, at a time when the world's largest importer is abandoning the "zero covid" restrictions, boosting global demand forecasts.

On the sanctions imposed on the Russian energy sector, the OPEC secretary general said that Moscow is a major player in the energy markets and it is not easy to replace its production, noting that it is too early to know the impact of sanctions on Russian oil supplies.

Al-Ghais said: "in OPEC, our path is clear and it is the importance of investing in oil, gas, and energy, OPEC has a clear message that the global economy will double by 2050, and there is an increase of 1.6 billion people, the world will need a 25 percent increase in energy inputs, so where will it get it?" "Oil will be the most important mix in the energy equation".