Bullish Opec says annual $700bn needed to meet oil demand

Global oil demand will remain robust in the medium and long term, driven by steady economic growth and supportive government policies worldwide, the Organization of the Petroleum Exporting Countries (Opec) has said.

The 11-member group forecasts oil demand will rise to 113 million barrels per day (bpd) in 2030 from 105 million barrels per day in 2025, according to its 2026 World Oil Outlook.

Global oil demand is estimated to increase to 119 million bpd in 2035 and to 124 million bpd in 2050, with “no peak in oil demand on the horizon”.

The demand increase will be backed by economic growth and policy shifts in the non-Organisation for Economic Co-operation and Development (OECD) – an intergovernmental organisation of 38 member countries. The largest demand increments are set to come from India, Other Asia (a broad grouping not including China and India), the Middle East, Africa and Latin America.

The report comes after the Iran war led to turmoil in the global energy markets, with oil prices hitting as high as $120 a barrel in March.

In April the UAE announced it was leaving Opec as well as the wider group Opec+.

The increased focus on energy security and affordability has shifted the global energy policy landscape, the report said, adding that this is reflected in policy adjustments and reversals that are expected to support oil demand in the medium and long term.

Opec secretary general Haitham Al Ghais said that the scale of humanity’s energy needs requires sustained investment today across all energies and technologies.

“For oil alone, investments of $17.7 trillion from 2026 to 2050 – or over $700 billion per annum – are needed to meet long-term demand,” he said.

This week, US president Donald Trump announced a peace agreement with Iran, leading to steep falls in Brent crude futures and US West Texas Intermediate (WTI).

Brent crude futures fell 0.54 percent to $79.42 a barrel and WTI declined 0.22 percent to $76.43 a barrel in Friday morning trade.

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