By Khaled Al-Mutairi KUWAIT, Feb 13 (KUNA) -- Secretary General of Arab Energy Organization (AEO), formerly known as OAPEC, Jamal Al-Loughani commented on performance of global economy during the last quarter of 2024, saying it remained cohesive despite fluctuations in developments across individual economies, while inflation rates and positive job market indices fall back.
Al-Loughani added in remarks to KUNA on occasion of issuing 2024 Q4 report on global oil conditions, saying that pricing pressures continued in certain economies as did inflation in service prices.
Risks facing average global economy growth relate to negative developments as intense protective commercial policies cause deterioration of commercial tensions, setbacks in global supply chains, and states of high uncertainty.
Al-Loughani forecasted a growth of 3.3 percent in 2025, slightly higher than 2024's 3.2 percent.
Crude oil immediate prices were disparate in Q4, explained Al-Loughani, in October prices were increased prompted by the state of uncertainty caused by geopolitical developments in the region, while November prices dropped due to increase of operations in futures market, shrink of expectations relating to short term oil market, and dwindling demand on crude oil.
Immediate prices shot back up in December, he went to explain adding that this was supported by large demand on crude oil from Europe, Asia and the pacific, as well as continuous decrease of Organization for Economic Cooperation and Development countries oil inventories.
He indicated that OPEC's crude basket dropped on a quarterly basis by 6.8 percent to USD 73.5 per barrel while Brent crude retreated to 5.7 percent and West Texas crude by 6.4 percent.
He attributed this decrease mainly to fears of weak demand in China, accompanied by slowing down of economic growth, decreased operation in independent refineries and expectations of further tariffs on Chinese commodities in 2025.
Global oil supplies increased by 0.3 percent in Q4 to reach 102.4 million barrels daily, Al-Loughani mentioned.
He said that this was caused by non-participant countries in OPEC+ declaration; mainly Latin American countries, Europe, OECD countries as well as Libya and Nigeria; OPEC members.
As for global demand, Al-Loughani mentioned that it rose by 1.5 percent on quarterly basis to reach 105.5 million barrels per day.
Total global oil inventories, indicated Al-Loughani, decreased by 1.1 percent on quarterly basis to reach 9.3 billion barrel by the end of 2024.
On the oil refining industry, Al-Loughni remarked that performance was enhanced due to increased operations in the Middle East as region saw the development and operation of multiple new refineries.
Development of global crude oil market had an effect on economic performance of organization members during Q4 with the decreased revenues negatively affecting funds and external accounts, he stated.
Al-Loughani commented that despite of the global challenges, member states remained committed to economic reformations which contributed to decreased inflation rates and boosted investments.
This non-oil economic activity contributed to balancing out the regressing of the oil sector, Al-Loughani remarked adding that he expects a continuous slowing down of the sector on the short-term.
Al-Loughani pointed to OPEC+ decision of decreasing output saying that it could reflect negatively on oil revenues, a significant national income source contributing to sustainable development.
As for short-term global oil market expectations, Al-Loughani commented that the market is shrouded by state of uncertainty making it difficult to determine a specific level for crude oil prices.
Investments in hydrogen projects shot up globally to reach USD 680 billion in 2024 compared to USD 90 billion in 2020, indicated Al-Loughani.
Al-Loughani took note of the region's increasing interest in developing blue and green hydrogen, and making it a national priority, and estimated that the region would come to be one of the largest green hydrogen exporters by 2050. (end) km.ht.aai