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Strong economic activity in the UAE, Saudi Arabia and the rest of the Middle East will continue to boost oil demand in the region, the Organization of the Petroleum Exporting Countries (OPEC) said.
Oil demand in the region was robust in June, doubling to 1 million barrels per day (mb/d), OPEC said in its report released on Tuesday.
The growth was driven by high electricity consumption during the summer, as well as increased mobility and air travel activity in the region.
Among those driving the growth were power generation requirements for residual fuels in Saudi Arabia due to hot weather and similar requirements for fuel oil in Iraq, OPEC said.
"Mobility in the region remained impressive and supported gasoline demand [growth]," the report said.
"Middle East airline activity continues ... helping jet/kerosene to improve."
The economy in Saudi Arabia grew 9% in the second quarter of the year, maintaining the fastest growth rate since 2011. The kingdom's non-oil gross domestic product (GDP) went up 5.4%.
In the UAE, the economy is expected to post robust growth this year. Strong economic growth is likely to boost consumer confidence and accelerate mobility and industrial activity, OPEC said.
The region's aviation sector also continued to recover, with Middle Eastern airlines' traffic surging by 246.5% in June, according to the International Air Transport Association (IATA).
With increased airline activity, OPEC said jet/kerosene demand grew from 60,000 barrels per day year-on-year in May to 70,000 barrels per day in June.
"Strong economic activity in the region will continue to support oil demand in the near future," OPEC said.
Saudi Arabia's oil demand, mb/d
(Reporting by Cleofe Maceda; editing by Seban Scaria)
