OPEC is optimistic about global oil demand and does not see a peak in sight

Haitham Al Ghais, secretary general of the Organization of Petroleum Exporting Countries in Abu Dhabi, said that oil demand is expected to be very high in the near and medium term.

He said that while there are challenges, the overall picture is not as bad as it sounds. The so-called "peak demand" will not occur as long as the global economy grows.

Ghais stated that the oil producing group was optimistic about the global economy. He noted growth in the U.S. as well as in China.

He reiterated that he does not expect the demand to peak anytime soon.

"It makes me think of the discussions about peak supply that took place many years ago. "Peak supply has never occurred and peak demand will not happen, as long as the world continues to grow," he said.

OPEC believes that oil demand will continue to grow for a much longer period of time than predicted by agencies like the International Energy Agency.

OPEC+ (OPEC and its Allies) has been reducing supply to support market.

Ghais spoke a day after it was announced that the group had agreed to postpone by a month the planned increase in oil production for December, citing the downward pressure on oil markets due to weak demand and increased supply outside of the group.

The oil prices increased by 3% on the Monday. (Reporting and writing by Yousef SABA, Alexander Cornwell, and Nadine Adwadalla; Editing and proofreading by Louise Heavens & David Goodman).

(source: Reuters)