Tag: OPEC

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India reiterates its partnership with OPEC

Puri assured Al Ghais that as one of the world’s fastest-growing economies, India is committed to supporting efforts to achieve such balance in global energy markets…reports Asian Lite News

India has reiterated its long-standing and constructive partnership with the Organisation of Petroleum Exporting Countries (OPEC).

India is the second largest export destination for the OPEC as a whole.

The reiteration of “long-standing” partnership came in a 30-minute telephone conversation with the OPEC Secretary General, Haitham Al Ghais and India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri, the Minister’s office said in a statement.

Puri emphasised the “importance of balancing market stability and affordability of oil with pragmatism. The discussions, inter-alia, covered recent trends in the global oil markets and their implications for international energy stability,” the statement said.

Puri assured Al Ghais that as one of the world’s fastest-growing economies, India is committed to supporting efforts to achieve such balance in global energy markets.

The statement pointed out that as per updated final figures for the financial year 2022-23, India imported crude oil, liquefied petroleum gas, liquefied natural gas and petroleum products from OPEC countries, amounting to $ 120 billion.

ALSO READ-Oil demand will grow 2.25 million bpd: OPEC

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Oil demand will grow 2.25 million bpd: OPEC

OPEC+ had earlier agreed to keep current oil production levels unchanged….reports Asian Lite News

 The Organisation of the Petroleum Exporting Countries (OPEC) said on Thursday that world oil demand will rise by 2.25 million barrels per day (bpd) in 2024 and by 1.85 million bpd in 2025, Reuters reported.

In its monthly report, OPEC predicted robust fuel use in the summer months and stuck to its forecast for relatively strong growth in global oil demand in 2024, highlighting an unusually large gap between predictions of oil demand strength.

Meanwhile, OPEC+ had earlier agreed to keep current oil production levels unchanged.

During the meeting which took place via videoconference today, the JMMC reviewed the crude oil production data for the months of January and February 2024, noting to the high conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC).

The Committee welcomed the Republic of Iraq and the Republic of Kazakhstan pledge to achieve full conformity as well as compensate for overproduction. The Committee also welcomed the announcement by the Russian Federation that its voluntary adjustments in the second quarter of 2024 will be based on production instead of exports.

The JMMC stated that participating countries with outstanding overproduced volumes for the months of January, February and March 2024, will submit their detailed compensation plans to the OPEC Secretariat by 30th April 2024.

The Committee noted that it will continue to monitor the conformity of the production adjustments decided upon at the 35th ONOMM held on 4th June 2023, and the additional voluntary production adjustments announced by some participating OPEC and participating non-OPEC countries in April 2023, and the subsequent adjustments in November 2023 and February 2024.

The Committee further stated that it will continue to closely assess market conditions and noted the willingness of the DoC countries to address market developments and their readiness to take additional measures at any time building on the strong cohesion between OPEC and participating non-OPEC oil-producing countries.

The next meeting of the JMMC (54th) is scheduled for 1st June 2024.

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OPEC+ sticks to current output policy

The JMMC stated that participating countries with outstanding overproduced volumes for the months of January, February and March 2024, will submit their detailed compensation plans to the OPEC Secretariat by 30th April 2024…reports Asian Lite News

The participants of the 53rd Meeting of the Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Countries and its allies, OPEC+, agreed to keep current oil production levels unchanged.

During the meeting which took place via videoconference today, the JMMC reviewed the crude oil production data for the months of January and February 2024, noting to the high conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC).

The Committee welcomed the Republic of Iraq and the Republic of Kazakhstan pledge to achieve full conformity as well as compensate for overproduction. The Committee also welcomed the announcement by the Russian Federation that its voluntary adjustments in the second quarter of 2024 will be based on production instead of exports.

The JMMC stated that participating countries with outstanding overproduced volumes for the months of January, February and March 2024, will submit their detailed compensation plans to the OPEC Secretariat by 30th April 2024.

The Committee noted that it will continue to monitor the conformity of the production adjustments decided upon at the 35th ONOMM held on 4th June 2023, and the additional voluntary production adjustments announced by some participating OPEC and participating non-OPEC countries in April 2023, and the subsequent adjustments in November 2023 and February 2024.

The Committee further stated that it will continue to closely assess market conditions and noted the willingness of the DoC countries to address market developments and their readiness to take additional measures at any time building on the strong cohesion between OPEC and participating non-OPEC oil-producing countries.

The next meeting of the JMMC (54th) is scheduled for 1st June 2024.

ALSO READ-OPEC seeks increased investments in oil industry

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OPEC seeks increased investments in oil industry

Al Ghais stressed that these investments are crucial for ensuring reliable energy supplies for current and future generations….reports Asian Lite News

Haitham Al Ghais, Secretary General of the Organisation of the Petroleum Exporting Countries (OPEC), emphasised the need for increased investments in the oil industry to meet global energy demands and sustain economic growth.

He stressed that these investments are crucial for ensuring reliable energy supplies for current and future generations.

In statements to Emirates News Agency (WAM), Al Ghais said, “Allocating more investments in the oil industry will contribute to promoting the sustainability of the global energy sector, securing sufficient and reliable supplies for the world as a whole, and ensuring secure supplies for future generations.”

The OPEC Secretary General pointed out that the increase in investments in the oil industry comes in light of the increase in global demand for energy, as the upstream sector needs investments estimated at $11.1 trillion, the downstream sector about $1.7 trillion, while the midstream sector requires investments of $1.2 trillion by 2045.

The OPEC Secretary General highlighted the importance of investments in the energy sector for global energy security and emission reduction. He emphasised the role of member states in addressing critical global issues like climate change and energy transition.

He highlighted the organisation’s active involvement in climate change negotiations, emphasising member states’ belief in its global significance. OPEC facilitates information exchange and supports members in implementing strategies to reduce emissions, fostering environmentally friendly practices in the oil and energy industry.

He noted that OPEC members consistently announce and implement initiatives to meet ambitious climate goals, aligning with national commitments under the Paris Agreement. These efforts include innovative projects leveraging diverse natural resources and sector-specific expertise to develop technologies such as carbon capture, utilisation, and storage, enhancing sustainability across all facets of the oil industry.

The OPEC Secretary General highlighted investments in oil, hydrogen, and renewable energy by member states. He emphasised the importance of oil not just as an energy source but also for materials in renewables and various aspects of daily life. He stressed that oil is crucial for global economic growth and access to electricity, especially for the 675 million people who currently lack it.

ALSO READ: OPEC+ Agrees on Extension for Oil Output Cuts

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OPEC Forecasts Extended Growth for UAE’s Non-Oil Sector

The real estate sector in Dubai remains robust, supported by property sales reaching decade highs in recent months….reports Asian Lite News

The Organisation of the Petroleum Exporting Countries (OPEC) said that UAE’s non-oil sector “demonstrated robust growth throughout 2023, and a carry-over of this dynamic is likely to extend into 2024”.

According to OPEC’s Monthly Oil Market Report for January, the purchasing managers’ index (PMI) for the UAE non-oil sector reached 57.4 in December 2023, compared with 57.0 in November, aligning with the expansionary trend observed over the past few years. The current surge in activity is also fostering additional job creation, the report further revealed.

Additionally, the real estate sector in Dubai remains robust, supported by property sales reaching decade highs in recent months. Tourism is experiencing a rebound, contributing about 16 percent to the UAE’s GDP directly and indirectly through its impact on the supply chain and associated spending, according to Oxford Economics.

Dubai International Airport, as the world’s busiest international airport, surpassed pre-pandemic passenger levels, as per the report, with visitor numbers to Dubai rising by 22 percent year-on-year to 13.9 million from January to October 2023.

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India Urges OPEC to Ensure Oil Market Stability

The discussions spanned the short, medium, and long-term outlooks for the industry, acknowledging India’s pivotal role in global economic growth and energy demand…reports Asian Lite News

India, positioned as the world’s third-largest oil consumer, has urged the Organisation of the Petroleum Exporting Countries (OPEC) to ensure and maintain stability in the oil market for the collective benefit of consumers, producers, and the global economy. India’s Petroleum Minister Hardeep Singh Puri said this during the 6th India-OPEC Energy Dialogue held on November 9 in Vienna.

The high-level meeting, co-chaired by OPEC Secretary General Haitham Al Ghais and Minister Puri, featured “open and candid” discussions centering on crucial aspects of oil and energy markets, with a particular focus on guaranteeing “availability, affordability, and sustainability” to secure the stability of energy markets. The discussions spanned the short, medium, and long-term outlooks for the industry, acknowledging India’s pivotal role in global economic growth and energy demand.

Minister Puri emphasised the vital nature of the close ties between India and OPEC, underscoring India’s status as the third-largest energy consumer, a significant crude oil importer, and the fourth-largest global refiner. He pointed out that fostering deeper collaboration between India and OPEC has the potential to significantly contribute to the long-term prosperity and stability of global oil markets. In this context, he urged OPEC to persist in playing a key role in maintaining market stability for the benefit of consumers, producers, and the global economy.

Both sides took note of the World Oil Outlook 2023, which predicted India’s role as the fastest-growing major developing economy, projecting an average long-term growth of 6.1 percent between 2022 and 2045, accounting for over 28 percent of incremental global energy demand during the same period. Recognizing the importance of continued cooperation and dialogue, the meeting aimed to explore further areas for future collaboration, emphasizing the mutual interests of producers and consumers.

Secretary General Ghais commended India’s “balanced, realistic, and pragmatic” approach to energy issues, highlighting the positive relationships developed between OPEC, its member countries, and major Indian oil companies. He expressed optimism about the pivotal role of the India-OPEC relationship in fostering global energy security, ensuring energy affordability, and reducing emissions in the coming years.

The meeting concluded with a shared understanding of the necessity to enhance cooperation between India and OPEC, with plans to convene the next meeting of the India-OPEC Energy Dialogue in India during 2024, reinforcing the commitment to sustained collaboration and stability in the global energy landscape.

ALSO READ-OPEC Raises Future Oil Demand Outlook

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OPEC: UAE’s Non-Oil Economy to Thrive in 2024

It also marked the strongest growth in the country’s non-oil private sector since June, as new orders increased to their highest level since June 2019….reports Asian Lite News

The UAE’s non-oil economic activities continued to see robust performance and are expected to extend healthy development into 2024, the Organisation of the Petroleum Exporting Countries (OPEC) said.

In its OPEC Monthly Oil Market Report for November 2023, the organisation anticipated the upward trend in non-oil activities to continue supporting further growth for the next year

The report stated that this growth was supported by the October Purchasing Managers Index (PMI), which increased to 57.7 from 56.7 in September, confirming the expansionary trend of the past few years.

It also marked the strongest growth in the country’s non-oil private sector since June, as new orders increased to their highest level since June 2019.

The tourism sector – which accounts for about 16 percent of the GDP – continued its strong performance, with the number of visitors to Dubai increasing by 19 percent year-on-year to stand at 8.5 million.

Growth prospects in the UAE’s non-oil GDP may continue to build momentum, supported by increased business confidence, government reforms and an expansion in household spending, the report added.

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OPEC Raises Future Oil Demand Outlook

HRH also thanked the attendees of MENA Climate Week 2023 for participating in this crucial event..reports Asian Lite News

The 2023 OPEC World Oil Outlook (WOO) was launched today at the King Abdullah Petroleum Studies and Research Center (KAPSARC) in the Kingdom of Saudi Arabia.

First published in 2007, the WOO offers a detailed review and assessment of the medium- and long-term prospects for the global oil and energy to 2045, according to a statement.

The 17th edition of the flagship publication takes on board recent energy and economic-related developments, particularly related to the shifting dynamics around net zero policies, with many populations questioning the targets and the benefits, policymakers reevaluating their approach to energy transition pathways and new technologies being developed and deployed. It also underscores the need to bring modern energy services to billions that continue to go without.

HRH Prince Abdul Aziz Bin Salman, Minister of Energy of the Kingdom of Saudi Arabia and Chairman of the Board of Trustees at KAPSARC was the special guest of honour and delivered remarks at the opening of the launch.

In HRH’s remarksو HRH Prince Abdul Aziz welcomed all attendees to KAPSARC as the Chairman of its Board of Trustees, especially HE Hayan Abdulghani Abdulzahra Alsawad, Iraq’s Deputy Prime Minister for Energy Affairs and Minister of Oil.

HRH also thanked the attendees of MENA Climate Week 2023 for participating in this crucial event, noting that it endeavours to illustrate that we are taking a lead in this issue.

OPEC Secretary General, Haitham Al Ghais, said it was a great privilege to launch the publication in the presence of HRH Prince Abdul Aziz Bin Salman and thanked Fahad Alajlan, President of KAPSARC, and his dedicated staff, for supporting with preparations for such an important OPEC event.

Al Ghais highlighted that the WOO 2023 provides a data-driven, fact-based outlook that emphasizes the realities we see before us. “The upshot is there is no credible way to address all the challenges before us without utilizing all available energy sources, all relevant technologies, and with energy market stability as a cornerstone for the huge investments required.”

“The WOO 2023 launch represents the culmination of many months of modelling, writing, review and production. It should be viewed as an insightful reference tool, one that underscores OPEC’s commitment to dialogue, knowledge-sharing and data transparency”, HE Al Ghais added.

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Puri urges OPEC chief to infuse sense of affordability in oil markets 

Puri wondered whether the global economy is again going to witness a situation similar to the economic turmoil of 2008 which had become a self fulfilling prophecy…reports Asian Lite News

With OPEC and OPEC+ having reduced the availability of oil by 4.96 million barrels per day from the market since 2022, thus spiking brent prices from $72 per barrel in June to $97 per barrel in September 2023, Petroleum Minister Hardeep Singh Puri has called for infusing a sense of pragmatism and affordability in the oil markets.

During his meeting with OPEC Secretary General Haitham Al-Ghais on the sidelines of the ongoing annual Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2023, Puri urged OPEC to recognise the gravity of the current economic situation and called upon him to use his office to imbue a sense of pragmatism, balance and affordability in the oil markets.

During the discussions, the Petroleum Minister highlighted that due to the production cuts carried out by OPEC (10) and OPEC+ countries from August 2022 onwards, effectively around 5 per cent of the total global oil availability has been removed from the market, causing crude oil price to rise by 34 per cent in just last three months.

These cuts have been made despite growing energy demand, he said.

Brent crude oil prices jumped from $72 per barrel in June to $97 per barrel in September 2023, placing severe strains on the capacities of most oil importing consuming countries.

Puri, during his meeting with the OPEC chief, also highlighted that despite the geopolitical crisis of 2022, which has added to existing inflationary pressures and created a real risk of recession in large parts of the world, India, through positive intervention had effectively cushioned its economy from spiralling energy prices.

However he added that the world needs to be cognizant that around 100 million people have been pushed away from cleaner fuels, back to coal and firewood in the last 18 months.

Puri wondered whether the global economy is again going to witness a situation similar to the economic turmoil of 2008 which had become a self fulfilling prophecy.

Brent prices had initially soared from $93.60/bbl in January 2008 to $134.3/bbl in July 2008, fuelling an accelerated global economic meltdown, leading eventually to demand destruction and very low oil prices.

In the interest of global good, he advocated balancing global energy markets by ensuring that crude oil prices do not outstrip the paying ability of the consuming countries.

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OPEC Fund Aids Libya’s Flood Relief

The OPEC Fund has approved a US$500,000 aid grant to provide urgent and medium-term relief to the affected population and by meeting essential needs such as food, clean water, shelter, as well as protection and prevention measures.

The OPEC Fund for International Development (the OPEC Fund) is taking action to support relief and recovery efforts in Libya in the aftermath of Storm Daniel, which struck the country last month. Record-breaking rainfall and floods inflicted severe damage and tragic loss of life with currently over 10,000 fatalities and tens of thousands more missing and forcibly displaced.

In response to the humanitarian emergency, the OPEC Fund has approved a US$500,000 aid grant to provide urgent and medium-term relief to the affected population and by meeting essential needs such as food, clean water, shelter, as well as protection and prevention measures. The grant will be channeled through the International Federation of Red Cross and Red Crescent Societies (IFRC) to support the operations of the Libyan Red Crescent Society (LRCS) and deliver assistance on the ground.

OPEC Fund Director-General Abdulhamid Alkhalifa said: “Our hearts go out to the people of Libya who have endured unimaginable suffering due to this devastating storm. In close collaboration with the international community, we hope to provide essential support to those in need and to assist in the recovery from this disaster.”

The storm struck major population centers such as the cities of Benghazi, Tobruk and Derna, causing severe damage to the health system, electricity, telecommunication, infrastructure and roads, limiting access to these areas. The OPEC Fund’s grant is designed to provide immediate assistance to the most affected regions and the most vulnerable members of the population, including families, children, the elderly, and people with disabilities.

The OPEC Fund’s partnership with the International Federation of Red Cross and Red Crescent Societies (IFRC) dates back to 1997, with a track record of efficient and impactful implementation in challenging settings and crises. To date, the OPEC Fund has provided around US$32 million in grants to the IFRC for nearly 90 operations.

Libya is a founding member of the OPEC Fund and as such not eligible for OPEC Fund support with the exception of emergency grants. In the aftermath of the floods, Libya emphasized the need for additional medical personnel and urgent medical assistance, and appealed to the international community and humanitarian actors for support.

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