LOC12:51
09:51 GMT
KUWAIT, Nov 27 (KUNA) -- The Arab Energy Organization (AEO) on Thursday released its third quarterly report for 2025, providing a comprehensive overview of global petroleum developments, including supply, demand, prices, refining activity, and market trends impacting both regional and international energy sectors.
AEO Secretary-General Jamal Al-Loughani stated that global economic growth slowed slightly in the third quarter of 2025, but demonstrated significant resilience due to temporary trade agreements, redirected trade flows, improved emerging market finances, cautious expansionary policies, and rising investments in artificial intelligence.
He noted that global economic growth forecasts for 2025 were revised upward to 3.2 percent from the previous three percent, emphasizing that AI-driven productivity gains could enhance worldwide economic output and positively influence global energy consumption and petroleum sector performance.
Al-Loughani highlighted that the average spot price of the OPEC crude basket rose quarterly by approximately 4.3 percent to USD 70.4 per barrel, supported by strong seasonal fundamentals, including increased travel, summer fuel demand, higher refinery throughput, and greater global consumption.
Average futures prices for Brent and West Texas Intermediate crude increased by 2 percent to USD 71.8 and USD 64.9 per barrel respectively, driven by supply concerns, positive demand projections, and geopolitical tensions in Eastern Europe, affecting global energy market stability and investor sentiment.
Global crude oil and natural gas liquids supplies rose 1.9 percent from the previous quarter to 106.1 million barrels per day, reflecting higher production from OPEC+ members and increased output in the Americas, while global oil demand increased 1.2 percent to 105.5 million barrels daily.
Al-Loughani reported that total global commercial and strategic petroleum inventories increased 1.8 percent to approximately 9.41 billion barrels by the end of Q3 2025, with OECD commercial stocks reaching five-year average levels to help stabilize global oil markets.
He added that global crude oil refining activity improved, supported by higher refinery margins in the US, strong demand for transport fuels, naphtha, and liquefied petroleum gas, which drove operating rates in July to their highest levels since December 2018.
Regarding short-term market outlook, Al-Loughani noted that oil markets remain uncertain, with OPEC forecasting that non-OPEC+ supply will decline to approximately 53.6 million barrels per day in Q4 2025, while global demand is expected to rise to around 106.6 million barrels daily.
He concluded by praising OPEC+ efforts, including six Arab member states, for their continuous coordination to maintain precautionary measures, achieve market balance, and support stability and sustainable growth in the global petroleum sector amid ongoing economic and geopolitical uncertainties. (end)
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