Secretary Al Ghais says media distorted OPEC’s monthly market report, triggering sharp drops in global crude prices.

In his most recent public statements, Haitham Al Ghais, secretary-general of the Organization of the Petroleum Exporting Countries (OPEC), sharply criticized claims that an oil surplus will occur in 2026.

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He argues that certain international media outlets distorted the data presented in OPEC’s Monthly Oil Market Report (MOMR), which contributed to steep declines in global crude benchmarks.

Al Ghais emphasized that the narrative of an “imminent surplus” was based on selective or inaccurate readings of the data. He stressed that the MOMR is “very basic” and “nothing complex,” yet the interpretations suggested OPEC was signaling a significantly oversupplied market next year.

OPEC currently believes the oil market will remain broadly balanced in 2026. The latest MOMR shows that the organization revised its 2026 outlook from a slight supply deficit to a scenario of near-total equilibrium.

Key projections include global oil demand growth of approximately 1.6 million barrels per day, which would raise total demand to between 106.2 million and 106.4 million barrels per day, and non-OPEC supply growth of 1.3 million barrels per day. Although modest, the shift to a no-deficit scenario was enough to unsettle traders, with Brent and WTI prices falling more than 4% in a single session.

The report’s reception highlights the long-standing discrepancy between OPEC’s demand forecasts and those presented by the International Energy Agency (IEA).

The IEA maintains a scenario characterized by slowing demand growth and a potential oversupply driven by rising production from non-OPEC countries such as the United States, Brazil, Guyana and Canada.

Meanwhile, OPEC expects emerging markets to continue driving strong global demand and argues that predictions of “peak oil demand” are premature. For investors, this episode underscores how interpretations — not just fundamentals — can fuel volatility.

Media coverage suggesting an oversupplied market contributed to sudden downward pressure on crude prices, prompting traders and hedge funds to take defensive positions. Energy sector stocks also declined, and options markets reflected increased caution as put-option buying rose.

Al Ghais’ public response reinforces OPEC+’s commitment to managing supply in a way that supports prices. Although the alliance has signaled a gradual withdrawal of voluntary production cuts, its recent track record shows a willingness to adjust if market conditions worsen.

teleSUR/ JF

Sources: OPEC – Energy News

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