Opec expects global oil demand to rebound higher than before the pandemic, reaching 103.7 million barrels per day by 2025, as countries accelerate efforts to revive economies, the group said in its annual oil outlook.
Incremental increase in oil demand growth will remain "relatively high" between 2022 and 2023 at 2.1m bpd and 1.5m bpd, respectively, the exporters group said in its World Oil Outlook 2045 report on Thursday.
The return of pre-Covid-19 economic growth rates, particularly in the developing world, as well as industries such as aviation, road transport and industry looking to “catch up” on demand will be the biggest drivers behind oil demand growth.
Growth over the medium-term will be marked by “normalisation of demand growth” with long-term trends leading to “moderate levels of annual incremental demand just above 1m bpd," Opec said.
"The pandemic’s impact and resulting containment efforts precipitated one of the most tumultuous periods in the history of oil," Opec secretary general Mohammed Barkindo said. "The global industry faced an existential threat, especially in April 2020, when oil demand collapsed and storage capacity came dangerously close to being exhausted in some parts of the world.”
The existential threat Mr Barkindo refers to is the dramatic collapse in West Texas Intermediate, the benchmark for US oil, fell below zero to trade briefly at -$40 per barrel in April close to the expiry of its May contract. The plunge was largely due to over capacity constraints at its main delivery point in Cushing, Oklahoma and industries coming to a standstill as a result of the pandemic.
Since 2016, Opec joined hands with non-member producers led by Russia in an alliance known as Opec+, to undertake market corrections. It made the biggest cuts in history earlier this year.
Opec+ cut back nearly 9.7m bpd between May and July to counter the glut in the market reinforced by the slump in demand caused by halted air and ground travel due to the pandemic.
The alliance has since relaxed restrictions and has begun increasing output in line with rising demand for crude, following relaxation of mobility restrictions worldwide.
Currently, the group is cutting back 7.7m bpd, with tapered curbs set to remain in place until April 2022.
In spite of the drop in demand for energy in 2020, Opec forecasts continued growth medium and long-term. The group expects global primary energy demand to grow by 72 million barrels of oil equivalent per day between now and 2045.
Opec sees primary energy demand growing at an average rate of 0.9 per cent between 2019 and 2045. Demand over this period is expected to expand from 289m boepd in 2019 to 361m boepd in 2045.
"In this regard, India, China and other developing countries with increasing populations and high economic growth play a key role in increasing energy demand while developed nations in the OECD [Organisation for Economic Co-operation and Development countries] are exerting more of their efforts on energy efficiency and low-carbon technologies,” Opec said.
Nearly half of total energy demand growth is expected to come from India and China, the report added.
Opec continued to bet on bullish prospects for oil despite several oil majors such as Shell and BP writing off the value of their hydrocarbon assets this year.
The oil producers group expects a partial recovery of oil in 2021, with “healthy” growth rates expected over the medium-term. Oil demand is expected to reach 94.4m boepd in 2025.
"In 2019, oil represented for more than 31 per cent of global energy demand and is projected to remain the largest contributor to the energy mix to 2045, accounting for more than 27 per cent, followed by gas (about 25 per cent) and coal (almost 20 per cent),” the Vienna-based organisation said.
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What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
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Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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What is Folia?
Prince Khaled bin Alwaleed bin Talal's new plant-based menu will launch at Four Seasons hotels in Dubai this November. A desire to cater to people looking for clean, healthy meals beyond green salad is what inspired Prince Khaled and American celebrity chef Matthew Kenney to create Folia. The word means "from the leaves" in Latin, and the exclusive menu offers fine plant-based cuisine across Four Seasons properties in Los Angeles, Bahrain and, soon, Dubai.
Kenney specialises in vegan cuisine and is the founder of Plant Food Wine and 20 other restaurants worldwide. "I’ve always appreciated Matthew’s work," says the Saudi royal. "He has a singular culinary talent and his approach to plant-based dining is prescient and unrivalled. I was a fan of his long before we established our professional relationship."
Folia first launched at The Four Seasons Hotel Los Angeles at Beverly Hills in July 2018. It is available at the poolside Cabana Restaurant and for in-room dining across the property, as well as in its private event space. The food is vibrant and colourful, full of fresh dishes such as the hearts of palm ceviche with California fruit, vegetables and edible flowers; green hearb tacos filled with roasted squash and king oyster barbacoa; and a savoury coconut cream pie with macadamia crust.
In March 2019, the Folia menu reached Gulf shores, as it was introduced at the Four Seasons Hotel Bahrain Bay, where it is served at the Bay View Lounge. Next, on Tuesday, November 1 – also known as World Vegan Day – it will come to the UAE, to the Four Seasons Resort Dubai at Jumeirah Beach and the Four Seasons DIFC, both properties Prince Khaled has spent "considerable time at and love".
There are also plans to take Folia to several more locations throughout the Middle East and Europe.
While health-conscious diners will be attracted to the concept, Prince Khaled is careful to stress Folia is "not meant for a specific subset of customers. It is meant for everyone who wants a culinary experience without the negative impact that eating out so often comes with."
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The bio
Favourite book: The Alchemist by Paulo Coelho
Favourite travel destination: Maldives and south of France
Favourite pastime: Family and friends, meditation, discovering new cuisines
Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.
Favourite Author: My father for sure
Favourite Artist: Damien Hurst
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
UAE currency: the story behind the money in your pockets
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List of UAE medal winners
Gold
Faisal Al Ketbi (Open weight and 94kg)
Talib Al Kirbi (69kg)
Omar Al Fadhli (56kg)
Silver
Zayed Al Kaabi (94kg)
Khalfan Belhol (85kg)
Zayed Al Mansoori (62kg)
Mouza Al Shamsi (49kg women)
Bronze
Yahia Mansour Al Hammadi (Open and 94kg)
Saood Al Hammadi (77kg)
Said Al Mazroui (62kg)
Obaid Al Nuaimi (56kg)
Bashayer Al Matrooshi (62kg women)
Reem Abdulkareem (45kg women)
