Oil demand to be healthy in 2018

Dr Sultan bin Ahmad Al Jaber speaks during official opening of the Global Energy Forum held in Abu Dhabi on Friday. - Photo by Ryan Lim

There will be a global demand for oil this year and oil prices might continue to go up and gain more stability, according to Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy.
"I am optimistic the demand for oil in 2018 will be healthy as we look for stability of the market," he said.
"As the Organisation of Petroleum Exporting Countries (Opec), we have corrected many things as far as production and polices are concerned and we have signed agreements as we look forward to ensure longer and permanent solutions to changes in oil prices."
The minister, who is also the current President of Opec, made the comments during a discussion on "Setting the 2018 Energy Policy Agenda" at the second-annual Atlantic Council Global Energy Forum in Abu Dhabi on Friday. The 14-strong Opec nations along with 10 oil states outside of the cartel, had in December 2017 reached an agreement to limit oil output until the end of 2018, a decision that came after what was already more than a year of production cuts.
"We need to give the market more time. We are looking to a year of corrections and I believe oil prices will stablise. Countries just need to stick to the agreements," said Al Mazrouei. He however noted that the demand for oil will always remain an important factor in setting the prices. Rainer Baake, State Secretary, Federal Ministry of Economic Affairs and Energy, Federal Republic of Germany said technology was also a factor in increasing oil production. "We have seen more production of oil in the recent years and this is because of advances in technology." He said countries should adopt the use of renewable energy like solar to reduce the dependence on natural gas to generate power.
"Countries need to cut the use of oil and use try other energies like solar. Solar is efficient and cheaper than all other forms of energy. This is the type of energy that Germany has adopted and it is working out well."
Dr Sultan bin Ahmad Al Jaber, Minister of State and chief executive of Abu Dhabi National Oil Company (Adnoc )said. "This economic growth will continue to drive energy consumption, which will expand by at least 25 per cent by 2040 - to a level no single source can meet. So, as we diversify the energy mix, hydrocarbons will continue to play a vital role in meeting demand. In fact, by the end of this year, global demand for oil alone is set to break the threshold of 100 million barrels per day."
Wafaa Yousuf Al Zaabi, Managing Director, Kuwait Petroleum Corporation, said their current strategy is diversification and intergration of the oil sector into veto-chemical and that they are planning to invest $112 billion in the transformation of the oil sector by 2020.  - ismail@khaleejtimes.com