<h2 class="wp-block-heading" id="h-topline">TOPLINE</h2>



Global oil demand reached record levels in June and is poised to peak again in August, the International Energy Agency&nbsp;<a href="https://www.iea.org/reports/oil-market-report-august-2023" target="_blank" rel="noreferrer noopener">said</a>&nbsp;on Friday, warning that price hikes could be on the horizon as slowing outputs from major suppliers like Saudi Arabia tighten supply.



<h2 class="wp-block-heading" id="h-key-facts">KEY FACTS</h2>



World oil demand hit a record 103 million barrels a day in June, the IEA said.



The agency said demand could rise further in August and demand for 2023 as a whole is expected to reach 102.2 million barrels a day.



The figure, an increase of around 2.2 million barrels a day from the year before, would mark the highest ever annual level, the agency said.



China is responsible for the lion’s share of this growth, accounting for more than 70% of the uptick, the IEA said, adding that demand there was “stronger than expected” and reached new highs “despite persistent concerns over the health of the economy.”



Strong summer air travel and the increased use of oil in power generation also contributed to increased demand, the IEA said.



The IEA forecast continued, albeit slower, growth for oil demand in 2024, pointing to “lacklustre economic conditions,” new electric vehicles and the “post-pandemic rebound running out of steam.”



<h2 class="wp-block-heading" id="h-what-to-watch-for">WHAT TO WATCH FOR</h2>



Oil prices could be poised to rise even higher in coming months as major producers, particularly Saudi Arabia, move to constrict supplies. Previous production cuts from the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have helped&nbsp;<a href="https://www.reuters.com/markets/commodities/oil-benchmark-brents-price-structure-reflects-tighter-market-2023-08-10/" target="_blank" rel="noreferrer noopener">drive</a>&nbsp;oil prices up and the IEA warns the bloc’s targets, if maintained, pose “a risk of driving prices still higher.”



<h2 class="wp-block-heading" id="h-tangent">TANGENT</h2>



The IEA said Russia’s oil exports breached the price cap put in place by the Group of Seven (G7) nations. Prices reached an average of $64.41 a barrel last month, the IEA said, above the $60 a barrel cap the group set. The cap was designed to limit Moscow’s ability to fund its war in Ukraine while simultaneously averting chaos in global energy markets by keeping its oil on the markets and it limits how companies can move Russian oil by cutting access to things like insurance and other key services should they pay more than this threshold. The rule has changed the map of global oil supply chains and exports from Russia, a major producer, away from Europe and towards Asia. The IEA said crude exports to India and China accounted for 80% of Russia’s shipments.



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<h2 class="wp-block-heading" id="h-key-background">KEY BACKGROUND</h2>



While oil demand dropped during the Covid-19 pandemic and as the world shifted to greener forms of energy, supplies have also tightened from output cuts and disruption from Russia’s invasion of Ukraine. The recent squeeze, spearheaded by Saudi Arabia’s voluntary production cuts, have helped push prices up and Brent crude, a key international benchmark, was trading at $88 dollars a barrel on Thursday, a six month&nbsp;<a href="https://www.reuters.com/markets/commodities/iea-lowers-2024-oil-demand-growth-forecast-2023-08-11/" target="_blank" rel="noreferrer noopener">high</a>.



<h2 class="wp-block-heading" id="h-further-reading">FURTHER READING</h2>



<a href="https://www.forbes.com/sites/roberthart/2023/07/19/electricity-demand-slows-in-2023-as-economic-downturn-and-energy-crisis-weighs-on-growth-iea-says/">Electricity Demand Slows In 2023 As Economic Downturn And Energy Crisis Weighs On Growth, IEA Says</a>&nbsp;(Forbes)



<a href="https://www.bloomberg.com/news/articles/2023-08-11/global-oil-demand-hits-record-and-prices-may-climb-iea-says" target="_blank" rel="noreferrer noopener">Global Oil Demand Hits Record and Prices May Climb, IEA Says</a>&nbsp;(Bloomberg)



<a href="https://www.reuters.com/markets/commodities/iea-lowers-2024-oil-demand-growth-forecast-2023-08-11/" target="_blank" rel="noreferrer noopener">IEA sees slower 2024 oil demand growth, tightening market this year</a>&nbsp;(Reuters)



<a href="https://www.bbc.com/future/article/20230726-an-experts-guide-to-peak-oil-and-what-it-really-means" target="_blank" rel="noreferrer noopener">Is the decline of oil in sight?</a> (BBC)<a href="https://www.forbes.com/sites/roberthart/"></a>

Oil pump with candle stick graph chart in the background. World Oil Industry

Oil Prices Poised To Soar As Global Demand Hits Record High, IEA Says

The Global Business Forum Africa in Dubai and Dubai Chamber’s representative offices across the continent have catalysed bilateral trade growth over the last decade.



Dubai’s trade with Africa has grown by leaps and bounds over the last decade, thanks to several important developments that have established new business links between the emirate and promising markets across the continent.



The emirate’s trade and investment relationship with Africa has gone from strength to strength in recent years as more African companies have entered the UAE, while many UAE companies have expanded their presence in Africa.



Among the most crucial factors that facilitated bilateral trade and investment flows is the Global Business Forum Africa in Dubai. Since this high-profile event series was launched by Dubai Chamber in 2013, Dubai’s non-oil trade with Africa has surged by over 71 percent to exceed $50 billion in 2020.



The 6th edition of the Global Business Forum Africa, set to descend on Expo 2020 Dubai October 13th -14th, 2021, comes at a time when UAE-Africa ties are rapidly expanding as the African Continental Free Trade Area (AfCFTA) and regional integration efforts gain momentum.



Dubai’s trade with Africa is projected to see an annual increase of up to 10% over the next five years following the implementation of AfCFTA, according to recent analysis from Dubai Chamber.



The changing dynamics brought forth by AfCFTA and the Covid-19 situation have created an opportunity for businesses in Dubai to re-position themselves and explore new African markets as they prepare for recovery.



As a world-class business hub located within close proximity to the continent, Dubai is an ideal partner that is well-positioned to unlock Africa’s untapped economic potential and support the next phase of the continent’s development.



From sustainable agriculture to logistics, free zones, finance and advanced technologies, Dubai has the right level of expertise and investment needed to fill market gaps in Africa.



Food security is another area of mutual interest offering a lot of potential as many African countries are major agricultural exporters, while the UAE has a new strategy in place that aims to diversify its food imports.



Yet, there remains huge potential to further expand the scope of bilateral trade and investment to other areas and fields of mutual interest, such as fintech, artificial intelligence, digital transformation, blockchain and smart city solutions.



Dubai&#8217;s strategic position as a thriving transit hub at the intersection of Asia, Europe and Africa makes it an ideal market that African companies can leverage to restart their businesses and boost their global footprint as they position themselves for post-Covid recovery.



With its close proximity to African markets, valuable expertise, and strong appetite for foreign investments, Dubai has all of the advantages and resources needed to support the region’s future growth.



Through its network of representative offices in Ghana, Kenya, Ethiopia and Mozambique, Dubai Chamber is well-positioned to support companies in the UAE that are keen to capitalize on business opportunities emerging across the continent.



The ever-expanding trade links between Africa and Dubai are positive sign that our efforts are bearing fruit. We look forward to exploring investment opportunities in new sectors and areas that UAE companies can benefit from.



The current timing is ideal for African companies to leverage GBF Africa and Expo 2020 Dubai platforms to explore new business prospects, expand their global footprint and foster cross-border partnerships that drive sustainable growth.



<meta charset="utf-8">By: Hamad Buamim



Hamad Buamim is President and CEO of Dubai Chamber

Tag: Global Business

FORBES AFRICA SOCIAL MEDIA

Oil Prices Poised To Soar As Global Demand Hits Record High, IEA Says

A Turning Point for Dubai-Africa Trade