Global Oil Demand Set to Soar, According to OPEC
Key takeaways
- OPEC has said oil demand will hit 110 million barrels a day by 2045
- The prediction is in stark contrast to the IEA, which said peak demand for oil is nearing and would decline to 400,000 barrels a day by 2028
- Brent crude oil prices have fallen 7.5% this year
An oil cartel predicts global oil demand will skyrocket — quelle surprise. The OPEC Secretary General made the comments at a conference this week, directly contradicting other leading energy organizations’ predictions — and perhaps burying his head in the sand about declining oil prices. Here’s the lowdown.
Oil prices are one part of the picture that you can invest in with Q.ai’s Global Trends Kit. It holds a basket of global assets, such as oil, stocks and bonds, with a powerful AI algorithm sifting through the data to predict where the upside could be. It’s designed to help you make smarter investing decisions and help ensure the global economy is easier to access.
Download Q.ai today for access to AI-powered investment strategies.
What’s happening with oil?
The Organization of the Petroleum Exporting Companies (OPEC) has officially predicted that global energy needs will increase by nearly a quarter (23%) and crude oil demand will hit 110 million barrels a day by 2045.
Speaking at a conference on Monday, OPEC’s Secretary General, Haitham Al Ghais, commented while alternative fuels like “gas hydro, nuclear hydrogen and biomass will expand”, the forecast was justified because “oil is irreplaceable for the foreseeable future”.
The prediction contradicts the International Energy Agency (IEA)’s statement that peak demand for oil is nearly here, with a global decline in demand hitting lows of 400,000 barrels daily by 2028.
The oil market in 2023
Crude oil prices skyrocketed last year as Russia invaded Ukraine, putting pressure on the international energy market, but since then, they’ve steadily returned to normal levels. Rising interest rates, supply levels remaining higher than expected and a strong dollar have also hammered prices.
Brent crude, the international benchmark for oil prices, has fallen 7.59% this year to hit $73.05, while West Texas Intermediate crude futures have declined around 20% since their April 2023 peak. Both inched higher at the political turmoil over the weekend in Russia but prices soon retreated.
OPEC isn’t exactly cheering the decline. It recently announced it would be cutting oil production by 1 million barrels per day in July in a bid to prop up oil prices.
The bottom line
It’s always worth remembering that OPEC obviously has a vested interest in keeping oil production high. But if you want to keep your investment options open and maintain a diversified portfolio, adding oil stocks means you stand a better chance of catching the upside if it materializes. Plus, using AI investing makes that even easier for you.
Getting started with global investments for your portfolio can be daunting if you don’t know where to start. Q.ai’s Global Trends Kit helps simplify international investing so you can add oil, forex and foreign stocks, all with the help of a nifty AI, to your investment strategy without the stress.
Download Q.ai today for access to AI-powered investment strategies.
