The world needs to "pump" more money to meet oil demand

OPEC Secretary General warns of oil market volatility due to lack of investment. (Source: Getty Images)

Mr. Haitham Al Ghais called on the world to focus on reducing greenhouse gas emissions, stressing that large investments are needed in all energy sectors.

OPEC estimates that the world needs to invest $12.1 trillion to meet rising oil demand in the long term.

With global oil demand growth of about 8 million barrels per day, the world could face a supply problem, according to Fereidun Fesharaki, chairman of energy consultancy FGE Consultancy.

Russia can maintain production at around 10-11 million barrels per day, but future growth of 2 million barrels per day may not be possible if sanctions are maintained.

Currently, Russian oil and gas are subject to sanctions imposed by the West to limit exports to these countries.

Mr. Fesharaki wants to maintain oil prices above $80 a barrel and possibly above $100 a barrel if the market tightens.

At a meeting in October 2022, OPEC and its allies (also known as OPEC+) agreed to cut production by 2 million barrels per day, about 2% of world demand, from November 2022 to the end of 2023 to support the market as the economic outlook worsens, putting pressure on oil prices.

OPEC+ will meet on June 4 to decide on next action.