OPEC Sees 2027 Oil Demand Rise

OPEC Secretary General Haitham Al-Ghais predicted that global oil demand will increase by 1.7 million barrels per day in 2027, compared to 400,000 barrels in 2026, as pent-up demand emerges and some of the demand shifts to the coming year. He emphasized that the world still requires long-term investments valued at approximately $18 trillion until 2050 to meet future demand and ensure the security of oil supplies, especially given the ongoing shortfall in current investments in exploration, production, refining, and transportation. He pointed out the importance of projects like the East-West oil pipeline in safeguarding supplies from crises, warning that a lack of investments could lead to bottlenecks and market volatility. Al-Ghais also forecasted a 23% increase in energy demand by 2050 due to population growth and urban expansion, which will necessitate substantial infrastructure investments—particularly with the rising use of artificial intelligence technologies and data centers. He reaffirmed that OPEC continues to invest in oil, gas, and all energy sources to meet future demand, highlighting the importance of strategic planning, citing Saudi Arabia’s example in developing its oil infrastructure through the East-West pipeline.

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