OPEC Gen-Sec Believes Long-Term Demand Outlook is Robust

Saudi Arabia’s decision to postpone its oil capacity expansion should not be interpreted as an assessment that crude demand is falling, OPEC’s Secretary General said, cited by Reuters.

• "We stand by what was published in our latest outlook we firmly believe that it is robust," Haitham Al Ghais told Reuters.
• "If anything, changing narratives we are seeing now ... a lot of countries in the world turning back and slowing down and rethinking their net zero goals ... that will create further long-term demand for oil," he added.
• Sources told Reuters that the decision not to expand from 12m b/d to 13m b/d was at least six-months in the making and because spare capacity was not being monetised.
• Al Ghais said the nature of the current cuts implemented by OPEC+ being voluntary reflects the group’s flexibility.