OPEC Sec. General says lower oil prices driven by fear, optimistic on 2023 outlook

OPEC Sec. General says lower oil prices driven by fear, optimistic on 2023 outlook

A recent oil-price slide reflects fears of economic slowdown and masks physical market fundamentals, OPEC’s new secretary general told Reuters, as he took a relatively optimistic view on the outlook for 2023 as the world tackles rising inflation.

Haitham al-Ghais, who took office on August 1, said oil demand was robust in the physical market, concern of Chinese economic slowdown was exaggerated, and demand was likely to find support from jet fuel use as people travel more.

For the latest headlines, follow our Google News channel online or via the app.

The price of Brent crude came close to an all-time high of $147 a barrel in March after Russia’s invasion of Ukraine exacerbated supply concerns. Prices have since declined and hit a six-month low below $92 this week.

“There is a lot of fear,” al-Ghais said in an online interview. “There is a lot of speculation and anxiety, and that’s what’s predominantly driving the drop in prices.”

“Whereas in the physical market we see things much differently. Demand is still robust. We still feel very bullish on demand and very optimistic on demand for the rest of this year.”

“The fears about China are really taken out of proportion in my view,” said al-Ghais, who