Despite extended production cuts, OPEC chief remains optimistic about oil demand.

• OPEC's head dismissed "pessimistic" predictions of decreasing oil demand in the upcoming year.
• Amid a slowing Chinese economy and abundant global supply, the forecasts predict a decline in oil demand.

Despite extending production cuts the day before, the head of OPEC dismissed forecasts of decreasing crude demand in the upcoming year, asserting that there was an excessive amount of pessimism in the market.

OPEC Secretary-General Haitham Al Ghais stated at the Adipec energy conference in Abu Dhabi that the organization expects demand growth of 1.9 million barrels per day this year.

"Some analysts might argue that this is on the high side, but other independent researchers in the market have it at similar levels," he said. "We believe it's at very low levels, but we're still quite robust on demand."

Al Ghais stated that while some corners in the market and analysts express pessimism about the demand outlook, our numbers align with many other independent sources.

In October, the Vienna-based oil producer group adjusted its projections for oil demand growth in the near-term, predicting growth of 1.93 million barrels a day this year and 1.64 million barrels a day in 2025. This is lower than its previous forecasts of 2.03 million and 1.74 million barrels a day, respectively.

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Despite being the world's largest crude importer and the second-largest crude consumer, after the United States, China's slowing economy has negatively impacted oil demand and led to abundant global supply, resulting in forecasts.

The OPEC chief stated that China is growing at 0.6 million barrels a day this year, and those who predict slower growth, such as 0.1 million barrels a day, are the outliers.

The group reported seeing positive numbers from the U.S. economy and good signs in the petrochemical and aviation sectors.

Despite recent stimulus measures, economists predict that China's economic growth will remain weak in 2025. The measures announced in late September did not generate a strong market response, and slow growth since the Covid-19 pandemic, as well as the increasing adoption of electric vehicles, has reduced oil demand in the world's second-largest economy.

The day after OPEC+ member countries agreed to delay a planned December output increase by one month, U.S. crude futures jumped over 2%. West Texas Intermediate was up 2.24% to $71.73 per barrel, while the international benchmark rose 2.17% to $75.27 by 12 p.m. in London.

Al Ghais stated that our policy of being attentive to the market has led to the continuation of our decision to delay the increase, which was supposed to be phased in gradually. He emphasized that there is still more to be seen and deliberated before the next ministerial meeting on Dec. 1.

"OPEC+ has always done this, as it has been part of our agreement since its inception," he stated.