OPEC predicts 24% rise in oil demand by 2050

In Calgary, OPEC Secretary General Haitham Al-Ghais announced that global oil demand is expected to grow significantly over the next 25 years. According to OPEC's projections, this demand will increase by 24 percent, reaching over 120 million barrels per day by 2050, driven primarily by population growth and rising energy needs worldwide. This forecast suggests that the demand for oil, despite ongoing discussions about energy transitions and alternative energies, remains robust and essential for sustaining global energy requirements. The projections come amid fluctuating market trends, where Brent crude prices are expected to fall to $60 per barrel by the end of 2025, reflecting seasonal boosts in demand. The announcement plays a pivotal role in the context of current economic conditions, including trade negotiations between the United States and China, impacting global market sentiments and oil inventories. Investors are particularly focused on upcoming data regarding US consumer inflation that could have broader implications on pricing and demand. Additionally, significant shifts in global trade patterns have raised concerns over tariffs and potential trade barriers, which could slow trade growth from levels seen in previous years. This economic backdrop is further complicated by the evolving landscape of the Islamic finance industry, especially in Qatar, which has demonstrated robust performance amid these changes. The insights from OPEC's forecasts reinforce the organization's commitment to maintaining oil supply levels that meet projected demand, thereby influencing market strategies and pricing models that could shape the future of the energy sector. Balancing between sustained oil production and the emergence of renewable energy sources remains a critical challenge ahead for OPEC and the global energy community.