The Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC), Haitham Al-Ghais, said that the organization expects the growth of global oil demand to rise to 1.7 million barrels per day in 2027, with the deferred demand being achieved as a result of the developments witnessed by the markets during the current year. Pointing out that the organization reduced its estimates of demand growth in 2026 to 400 thousand barrels per day, compared to 1.4 million barrels per day in its expectations at the beginning of the year.
Al-Ghais added - during a dialogue session at the World Petroleum Conference in Riyadh, on Monday - that several factors contributed to containing oil market movements, including the decline in China’s imports as a result of the accumulation of reserves, and the withdrawal of strategic oil reserves in a number of countries. Especially OECD countries, in addition to the slowdown in demand.
The East-West pipeline is an “insurance policy” for energy security
Al-Ghais pointed out that the “East-West” pipeline in Saudi Arabia represents a model of advance preparation to ensure energy security, saying that the Kingdom provides “the best example of providing what can be described as an insurance policy for energy security.”
He added: “This is a typical example of countries preparing for future events and developing something like an insurance policy in anticipation of any emergency.”
He pointed out that the pipeline, which extends from eastern to western Saudi Arabia, has proven its importance in dealing with recent developments, adding: “No one was talking about it; In fact, many people did not know about its existence, until we realized how useful and important it is.”
Al-Ghais said that oil still constitutes more than 30 percent of the global energy mix. Pointing out that oil supplies represent an essential element in global energy security.
Regarding the relationship between energy security and the shift towards reducing emissions, Al-Ghais raised questions about the impact of recent developments on long-term investments in hydrocarbons, and whether they will give efforts to reduce emissions and reach zero neutrality more urgency.
The International Monetary Fund called on member states to act quickly when they detect a rise in inflation, and to work to reduce the large fiscal deficit, in light of the continuing inflationary pressures fueled by investments in artificial intelligence, according to what the Fund’s Director General, Kristalina Georgieva, said on Monday.
Georgieva said, during a discussion session on the sidelines of the annual meetings of the International Monetary Fund and the World Bank in Bangkok, that significant increases in defense spending are also pushing inflation higher, after the energy shock resulting from the war in the Middle East. She added that these pressures increase the possibility of central banks resorting to raising interest rates, according to Reuters.
She pointed out that the rise in returns in advanced economies imposes repercussions on developing countries and emerging markets, saying that these economies “have become victims of the rise in returns in advanced economies.”
European stocks rose on Monday, led by banking stocks, with oil prices declining, amid hopes of reaching a truce between Russia and Ukraine that includes energy facilities, while investors await the start of the corporate results announcement season in search of new incentives for the markets.
The European Stoxx 600 index rose 0.43 percent to 634.25 points, by 07:09 GMT. The Spanish IBEX index, in which bank stocks have a large weight, jumped by 1.3 percent, recording the largest gains among the major European indices, according to Reuters.
Oil prices fell, amid expectations of an increase in Russian supplies, after US President Donald Trump announced that Russia and Ukraine had agreed to stop mutual attacks on energy facilities, following a US-Russian agreement on diesel supplies.
Euro zone bond yields also fell on Monday, boosting investor sentiment towards riskier assets.
Investors are looking forward to European companies' results reports to evaluate their financial and operational conditions, in light of continued geopolitical uncertainty and high borrowing costs.
The LVMH group is scheduled to announce its results after the close of European markets, while the ASML company, which specializes in semiconductor industry equipment, and the investment company EQT are expected to announce their results later in the week.
In individual stock movements, Nordex shares rose by 2.5 percent, after the manufacturer of onshore wind turbines announced an increase in orders for its projects, during the third quarter, by 30 percent on an annual basis.
