RIYADH: The global oil market is expected to be adequately supplied in 2025, even as OPEC+ extends its voluntary production cuts by an additional three months, according to the International Energy Agency.

In its latest report, the IEA raised its global oil demand growth forecast for 2025 to 1.1 million barrels per day, up from its previous estimate of 990,000 bpd. This upward revision is driven by rising oil demand in Asian markets.

The report comes just a day after OPEC revised its own global oil demand growth projection for 2025, cutting it to 1.4 million bpd. According to the oil producers’ group, total global oil demand is expected to reach 105.3 million bpd in 2025, an increase from 103.8 million bpd in 2024.

The IEA noted that OPEC+ decision to extend its voluntary production cuts for another three months and push back the ramp-up period by nine months, now extending to September 2026, has significantly reduced the potential supply surplus that was anticipated for next year.

However, the IEA cautioned that persistent overproduction from some OPEC+ members, strong supply growth from non-OPEC+ countries, and relatively modest global oil demand growth would still result in a comfortably supplied market in 2025.

Global oil consumption is projected to reach 103.9 million bpd in 2025, closely aligned with OPEC+ forecast.

The IEA also highlighted that oil demand growth next year would be largely driven by petrochemical feedstocks, while demand for transport fuels remains constrained by behavioral changes and advancements in technology.

The report also indicated that crude oil production from OPEC could increase next year if countries such as Libya, South Sudan, and Sudan can maintain their production levels, along with the expansion of Kazakhstan’s Tengiz field.

On the global supply side, non-OPEC+ countries are expected to contribute the majority of production growth, with the US, Brazil, Canada, Guyana, and Argentina collectively adding over 1.1 million bpd.

Additionally, the IEA forecasted that Saudi Arabia’s oil supply would receive a boost in 2025 from the start-up of Saudi Aramco’s Jafurah gas project, which will increase the Kingdom’s natural gas liquid supply.

In June, Aramco finalized $25 billion worth of agreements for the second phase of its Jafurah gas field development and the third phase of its master gas system expansion.

These infrastructure upgrades are expected to increase the network’s capacity by 3.15 billion standard cubic feet per day.

RIYADH: Egypt is set to accelerate its initial public offering program, with plans to propose stakes in at least 10 state-owned companies next year, according to Prime Minister Mostafa Madbouly.

In a Facebook post, the Egyptian prime minister’s office said that some of the companies which will float its shares include Wataniya Co., Safi Co., Silo Food Co, and 580-megawatt wind farm Gabal El Zeit.

The PM office added that shares of state-owned Alexandria Bank and Banque du Caire will also be included in the upcoming offerings. 

The announcement made by Madbouly indicates new efforts from the government to divest some of its assets to strengthen the country’s private sector and fiscal capabilities. 

Earlier this month, Egypt’s United Bank completed the public and private offering of 330 million shares, representing 30 percent of its issued capital. 

The United Bank offering raised a total of 4.57 billion Egyptian pounds ($90 million). 

Other companies that will be listed in 2025 include CID Pharma, Misr Pharma, and Alamal Alsharif Plastics.

Regarding tourism growth, Madbouly said that Egypt had a succesful year despite regional crises and geopolitical tensions. 

“This year, we will exceed 15 million tourists despite all the challenges that have affected the arrival of tourists in the region, but Egypt is on a good track in this area, and the numbers will be better next year,” said the prime minister. 

He added: “We are working in the tourism sector strongly, and we are moving ahead to increase hotel rooms, and improve the tourist experience in Egypt.” 

In the Facebook post, the PM’s office also highlighted the progress of the electricity connection project between Saudi Arabia and Egypt. 

He added that the work at the Badr converter station is 65 percent completed, with the first phase of the project’s wiring process expected to be completed before the next summer season. 

The prime minister further said that Egypt’s inflation rate fell to 25.5 percent in November, a significant decrease in this index over the past two years. 

In September 2023, the inflation rate in Egypt had increased to an all-time high of 38 percent. 

Madbouly added that the country’s reserve cash index has also improved, reaching $47 billion in November. 

Earlier this month, a report released by Fitch Ratings echoed the economic revival of Egypt. It highlighted that the general business and operating conditions for financial institutions in the country are expected to improve next year. 

The US-based agency added that falling inflation, improved investor confidence, and healthy foreign currency liquidity conditions are some of the major factors that could strengthen the banking sector in Egypt in 2025.