UAE non-oil economy continues to exhibit healthy growth: Opec
The organisation of the Petroleum Exporting Countries (Opec) stressed that the UAE's non-oil economy continued to exhibit a healthy growth dynamic, with the most recent data and economic indicators highlighting a robust expansion.
In its Monthly Oil Market Report issued today, Opec noted that the UAE is pushing ahead with initiatives to diversify the economy, with initiatives such as 'Operation 300bn', aiming to boost manufacturing, expand export markets, and attract foreign investment.
The report said that the Abu Dhabi and Dubai governments will continue to provide support to their economies' diversification efforts. The authorities are introducing policies to encourage the development of new sectors, including the digital sector, fintech, creative industries, scientific innovation, new energy sectors, and education.
It explained that strong performance in sectors like tourism, finance, and construction continues to support growth. The solid performance is highlighted by the UAE's high PMI, reaching 54 in March, compared with a level of 55 in February and January.
During the week ending 31st March, total oil product stocks in Fujairah rose by 4.96 mb, week on week (WoW), to stand at 24.34 mb, according to data from FEDCom and S&P Global Commodity Insights. At this level, total oil stocks were 4.07 mb higher than at the same time a year ago.
Opec lowered its forecast for global oil demand growth in 2025 to 1.30 million barrels per day and 1.28 million barrels per day in 2026.
Opec cut its 2025 global oil demand growth forecast on Monday for the first time since December, citing the impact of data received for the first quarter and trade tariffs announced by the United States.
The organisation of the Petroleum Exporting Countries, in a monthly report, said world oil demand would rise by 1.30 million barrels per day in 2025 and by 1.28 million bpd in 2026. Both forecasts are down 150,000 bpd from last month's figures.
US President Donald Trump's trade tariffs as well as a plan for higher output by Opec+, which includes Opec and allies such as Russia, have put downward pressure on oil prices this month and raised concern about economic growth.
In the report, Opec lowered its world economic growth forecast this year to 3.0% from 3.1% and reduced next year's to 3.1% from 3.2%. Last month, Opec said trade concerns would contribute to volatility but had kept forecasts steady, saying the global economy would adjust.
'The global economy showed a steady growth trend at the beginning of the year, however, recent trade-related dynamics have introduced higher uncertainty to the short-term global economic growth outlook,' Opec said in Monday's report.
Oil prices maintained an earlier gain after the report was released, with Brent crude trading near $66 a barrel following US exclusions on some tariffs. Prices have still dropped over 10% so far this month.
Opec's oil demand view is still at the higher end of industry forecasts and it expects oil use to keep rising for years, unlike the International Energy Agency, which sees demand peaking this decade as the world switches to cleaner fuels.
The IEA is scheduled to update its oil demand forecasts on Tuesday.
Opec's report also showed that crude production by the wider Opec+ fell in March by 37,000 bpd to 41.02 million bpd due in part to reductions by Nigeria and Iraq.
The group is scheduled to raise output in April and again in May as part of a plan to unwind its most recent layer of oil output cuts, which were put in place to support the market.
But the report also showed, ahead of the scheduled hikes, that Kazakhstan, which has persistently exceeded its Opec+ output target, increased production further in March by 37,000 bpd, breaching the restrictions again.
The Central Asian country's production rose to 1.852 million bpd last month, above its Opec+ quota of 1.468 million bpd for January-March.
The energy ministry said last Thursday that Kazakhstan exceeded its Opec+ quota in March but would fulfil its commitments in April and partially compensate for earlier overproduction, according to Interfax news agency. The organisation of the Petroleum Exporting Countries, in a monthly report, said world oil demand would rise by 1.30 million barrels per day in 2025 and by 1.28 million bpd in 2026. Both forecasts are down 150,000 bpd from last month's figures.
US President Donald Trump's trade tariffs as well as a plan for higher output by Opec+, which includes Opec and allies such as Russia, have put downward pressure on oil prices this month and raised concern about economic growth.
An industry source told Reuters on Monday that Kazakhstan's oil output fell in the first two weeks of April from the March average, but was still above the Opec+ quota.
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