‘Too much doom and gloom’: OPEC chief is bullish on oil demand despite extended production cuts
The head of oil producer alliance OPEC brushed off forecasts of dwindling crude demand in the coming year, saying there was too much pessimism in the market — despite the group extending production cuts just one day prior in an attempt to shore up prices amid subdued global consumption.
“Well, for OPEC, we have demand growth this year at 1.9 million barrels a day,” OPEC Secretary-General Haitham Al Ghais told CNBC’s Dan Murphy Monday at the Adipec energy conference in Abu Dhabi.
“Now some people might say this is on the high side, but other independent analysts, researchers in the market have it at similar levels,” he said. “Some have it at [what] we believe [are] very low levels. We’re still quite robust on demand.”
“I think there’s a bit too much doom and gloom and pessimism in terms of the demand outlook by some corners in the market, in terms of analysts and research, but we believe, still, our numbers are in line with many other independents,” Al Ghais said.
The Vienna-based oil producer group in mid-October downwardly revised its projections for oil demand growth in the near-term, forecasting growth of 1.93 million barrels a day this year and 1.64 million barrels a day in 2025. This compared to previous forecasts of 2.03 million and 1.74 million barrels a day, respectively.
While the outlook figure was trimmed, it’s still dramatically higher than that of the Paris-based International Energy Agency, which sees global oil demand increasing by roughly 900,000 barrels per day this year and close to 1 million barrels per day in 2025.
“We have lowered down our demand numbers, to be fair, in the last couple of months, by about 100,000 to 200,000 barrels a day,” Al Ghais said. “Nevertheless, we remain at 1.9 [million] and this is higher than the historical average, the pre-pandemic and even the post-pandemic recovery rate, which was around 1.2 million barrels per day.”
The forecasts come amid a slowing Chinese economy, which has significantly hit oil demand and abundant global supply. China is the world’s largest crude importer and the second-largest crude consumer, after the United States.
When asked about concerns over China’s economic trajectory, the OPEC chief replied: “We have China growing at 0.6 million barrels a day this year … I think the outliers who are looking at China growing at 0.1 [million barrels a day] or hardly any growth, are the outliers. We are not the outliers.”
He added that the group is “seeing some very positive numbers coming out of the U.S. economy” and that it sees “good signs in the petrochemical industry, aviation sector.”
Numerous economists expect China’s economic growth to remain relatively weak in 2025 despite recent stimulus measures implemented by Beijing. The measures announced in late September failed to elicit a strong reaction from markets, while slowed growth since the Covid-19 pandemic and increasing adoption of electric vehicles has slashed oil demand in the world’s second-largest economy.
The comments came just one day after OPEC+ member countries agreed to delay a planned December output increase by one month, causing U.S. crude futures to jump over 2%. West Texas Intermediate was up 2.24% to $71.73 per barrel and international benchmark Brent crude rose 2.17% to $75.27 by 12 p.m. in London.
“This is not the first time we delayed the increase, which is supposed to be phased in gradually … This is just a continuation of our policy of making sure that we’re very attentive to the market,” Al Ghais said, adding that there is more to be seen and deliberated before the next ministerial meeting on Dec. 1.
“This is nothing unusual that has not been, let’s say, part of the modus operandi of OPEC+ since our agreement has been in place,” he said.
OPEC+, which consists of OPEC member states and several producer countries outside the organization, has implemented a series of cuts and extensions of them since late 2022 amid rising supply around the world in an effort to shore up the market.
In case you needed another reason to feel jealous of Chinese car enthusiasts, the Chery Exeed VX C-DM three-row SUV is officially available for pre-order with 610 hp, 1,300 km (over 800 miles) of EREV range, and a starting price of $33,085 US.
State-owned Chinese automaker Chery recently launched the Exeed luxury brand, with its latest model, the Exeed VX C-DM plugin, making its international debut in Saudi Arabia February 23. At the same time, Chery opened the order books on the Exeed in China under the Exeed Lanyue C-DM name. And it is, in a word: impressive.
It’s really nice, you guys
Dubbed “the land business jet” on Exeed’s website, the Exeed VX C-DM pairs a 1.5L range-extending ICE motor with a three-speed DHT gearbox that integrates with a 165 kW e-motor. A second 175 kW electric motor sits in the rear axle, giving the big, seven-passenger SUV a combined peak power output of 455 kW (about 610 hp) and 920 Nm (nearly 680 lb-ft) of torque. That’s enough to rocket the big SUV from 0-60 mph in less than 5.0 seconds.
On the EV side of the ERVE equation, the Exeed VX C-DM packs a super-safe CATL NMC battery pack good for 180 km (about 112 miles) of CLTC range in electric mode – a far cry from the twenty-or-thirty-odd miles you’d get out of a conceptually similar Mazda CX-90 PHEV or Jeep Grand Cherokee 4xe.
It’s nice inside, too
In addition to that power and performance Exeed VX C-DM buyers also get a high-end interior with quilted leather, massaging front seats, slick infotainment screens, panoramic glass roof, a 23-speaker Lion Melody sound system, and LED mood lighting. That high-tech interior sets the stage for more high-tech baubles, like 26 ADAS functions that include self-driving features, an SDG system to reduce collisions, a 540-degree (?) camera for easy parking.
That ADA system combines with a “high-performance integrated cage body” and 10 driver and passenger airbags to deliver a 5 Star C-NCAP crash test rating.
And, yes – al that goodness starts at the equivalent of just 239,900 yuan ($33,085 US) in China.
Eat your heart out.
Electrek’s Take
We can talk about tariff this and trade war that all day long. The real message here, however, is that China is objectively, unequivocally, and obviously years ahead of the US when it comes to American EVs in terms of manufacturing efficiency, battery and charging technology, and value. And, for as long as they have a system that takes the burden of pensions and healthcare and other basics of life off the manufacturer (and we don’t) they’ll probably keep pulling ahead.
Head on down to the comments and tell me convince me otherwise.
SOURCE | IMAGES: Chery Exeed, via CarNewsChina.
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With revenue tumbling almost as fast as market share, Tesla stock is taking a pounding – exactly like CEO Elon Musk predicted! We’ve also got FSD rolling out in China, a German automation acquisition, and more on today’s red candlestick edition of Quick Charge!
We’ve also got some clarifying news at Mercedes-Benz, which is set to ditch its confusing EQ-based model alphanumerics and (God willing) their suppository-based styling language, too. Plus, Rivian launches a new upfit service to make it easier for fleet managers to order ready-to-work EVs, Ram ProMaster EV lives up to its promises with more options and a lower price tag, and a big solar deal goes down.
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Lennox Residential HVAC has launched an extreme cold climate heat pump that warms a house with low global warming potential (GWP) refrigerant in temperatures as low as -20F.
It’s called the Dave Lennox Signature® Collection SL22KLV Cold Climate Heat Pump, and Lennox claims its efficiency levels are 150% higher at colder temperatures than standard heat pumps.
In 2022, Lennox was the first company to complete the first phase of the US Department of Energy’s (DOE) Residential Cold Climate Heat Pump (CCHP) Technology Challenge, and the SL22KLV is a souped up version of the unit developed for that challenge.
The heat pump, which pairs with a smart thermostat, uses a variable-speed compressor with Electronic Refrigerant Injection (ERI) to adjust the energy usage based on the outside temperature, which helps to lower energy costs. When the temperature drops, the ERI increases heating output efficiently.
The SL22KLV has efficiency ratings of up to 21.10 for Seasonal Energy Efficiency Ratio 2 (SEER2), 13.2 for Energy Efficiency Ratio 2 (EER2), and 10.50 for Heating Seasonal Performance Factor 2 (HSPF2). It also features a precision-balanced, direct-drive fan and sound-dampening system for ultra-quiet operation as low as 58 decibels.
The heating capacity is between 21,600 Btuh and 60,000 Btuh, and the cooling capacity is between 22,000 Btuh and 56,000 Btuh.
Lennox’s new extreme cold heat pump uses the low global warming potential R-454B refrigerant, reducing environmental impact without compromising performance. It’s also eligible for the Energy Efficient Home Improvement Credit, a federal IRA tax credit for homeowners (and it’s still in place). There may also be other local utility and state incentives for installing a heat pump, so it’s definitely worth checking. It’s now available for order through local Lennox dealers.
Read more: Seriously good cold-climate heat pumps are headed to the US market
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