Warning from the Secretary of the Organization of the Petroleum Exporting Countries (OPEC)

Haitham Al-Ghais, the new Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), which holds two-thirds of the world's oil reserves, made statements about the possibility of a shortage in oil supply this year due to strong demand.

OPEC Secretary-General Al-Ghais said that the 16 percent drop in prices this month was 'exaggerated' amid concerns that consumption was slowing in China. "We are walking on a slippery slope, There may be a shortage in oil supply this year." Kuwait's Al-Ghais said, noting that the extra supply that the Organization of the Petroleum Exporting Countries and non-OPEC oil-producing companies can put on the market is dwindling. The price of oil has fallen to around 90 dollars a barrel this year amid signs of a slowdown in the Chinese economy. Oil consumption in China fell to a 2-year low in July. Despite this decline, Al-Ghais expects an increase in global oil demand. Al-Ghais predicts an increase of about 3 million barrels this year. "The Chinese economy has not yet fully opened up due to the 'zero Covid' policy. When China fully opens up, the impact will be great." The OPEC+ group, comprising the Organization of the Petroleum Exporting Countries and some non-Organization of the Petroleum Exporting Countries producer countries, surprised markets earlier this month by increasing oil production by only 100,000 barrels per day for September.

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