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said Petro-Logistics Chief Executive Daniel growth,” he said. “We haven’t seen China open when it next meets on Sept. 5, Al-Ghais said.
Gerber. up exactly -- there’s a strict Covid Zero policy The group, which has gathered online since
Kpler, said crude exports in June reached -- I think that will have an impact when China the start of the Covid-19 pandemic in early
950,000 bpd, the highest monthly level in gets back to full steam.” 2020, aims to have an in-person gathering in
three years, before dropping in July. Al-Ghais’ decades of experience at Kuwait Vienna in December, he said.
Oil products exports have also been rising Petroleum Corp. included opening the “We’ve demonstrated time and time again
and consultant FGE estimates Iran exported company’s first Beijing office in 2005. in the past that we’re willing to do whatever it
around 790,000 bpd of products in June, and The OPEC+ alliance surprised traders takes to do what the market really requires,”
expects shipments to reach close to 1 million earlier this month by agreeing on a token Al-Ghais said.
bpd by the fourth quarter. More than half was production increase of just 100,000 barrels BLOOMBERG
LPG and fuel oil. a day, despite calls for extra supplies by US
REUTERS President Joe Biden, who made a landmark
trip to group leader Saudi Arabia in July. GAS
OPEC chief sees high risk nations and non-members, explained that it Aramco confirms phased
The 23-nation group, an amalgam of OPEC
of oil squeeze amid bullish had to ration its “severely limited” reserves development plan for
of output with “great caution.” OPEC and
demand its partners hold idle capacity of roughly 2
million to 3 million barrels a day, or about 3%
Global oil markets face a high risk of a supply of world output, Al-Ghais said. Jafurah
squeeze this year as demand remains resilient The crunch has arisen from years of Saudi Aramco has confirmed a phased
and spare production capacity dwindles, the underinvestment in the global oil industry, development approach for its $100 billion-
new head of OPEC said. both in developing new supplies and building plus Jafurah unconventional onshore gas
Fears over slowing consumption in China the refineries and other infrastructure to project, which is expected to produce up to 2
and the wider world -- which have pushed process them, he said. billion cubic feet per day of gas by 2030.
crude prices 16% lower this month -- have “Chronic underinvestment for several The Saudi Arabian state-owned giant,
been exaggerated, OPEC Secretary-General years is really what’s taken us to where we are while reporting its second-quarter results
Haitham Al-Ghais said in an interview with today,” he said. on Sunday, said the first development phase
Bloomberg Television. World markets may also face strain as for the Jafurah gas plant is likely to come on
At the same time, producers in the European Union sanctions on OPEC+ stream by 2025.
Organization of Petroleum Exporting member Russia over its invasion of Ukraine Aramco said it is progressing with the
Countries and beyond are running out of come into effect in December. Despite the phased development of a project that will
extra supplies they can bring to market, Al- political turmoil, the group has shown it’s reach a raw gas processing capacity of 3.1 Bcf.
Ghais said at OPEC’s Vienna headquarters. keen to preserve ties with Moscow, which Al- “The facility for the gas plant will come
The Kuwaiti oil executive was appointed as the Ghais considers to have played a “critical role” in two phases. The first phase would come
group’s top diplomat this month. in the stability of global markets. in 2025. And the second phase will come
“We are running on thin ice, if I may use Oil’s losses deepened this week on signs on stream by 2027,” Aramco chief executive
that term, because spare capacity is becoming that OPEC member Iran is close to reviving a Amin Nasser said.
scarce,” Al-Ghais said. “The likelihood of a nuclear accord that could ease US sanctions The full field development of Jafurah is
squeeze is there.” on its oil trade. Tehran could add about 1.3 expected to reach a production capacity of 2
International oil prices have retreated to million barrels a day within six months of Bcfd by 2030, lifting the company’s overall gas
near $90 a barrel amid signs of a slowing an agreement, according to the International production capacity by 50% in the same time
economy in China -- where fuel use slumped Energy Agency. frame.
to a two-year low in July -- and a lackluster Still, global demand remains healthy The huge Jafurah project “will provide
holiday driving season in the US. Still, the enough to absorb any additional flows from feedstock for hydrogen and ammonia
OPEC chief remains confident that world the Islamic Republic, provided they are production and will help meet expected
oil demand will increase by almost 3 million released in a responsible and gradual fashion, growing local energy demand”, Aramco noted.
barrels a day this year, bolstered by China’s according to the OPEC chief. The unconventional gas project is part of
return from Covid-related lockdowns. With so much uncertainty, it’s too early the country’s long-term strategy, which aims
“China is still a source of phenomenal to say what the OPEC+ coalition will decide to boost gas production to free up almost 1

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