KUWAIT CITY, Nov 11: The global oil and gas industry has faced significant challenges since the start of the COVID- 19 pandemic, which severely suppressed global demand. Although a recovery was initially anticipated post-pandemic, the combined effects of the recent economic downturn and global inflation have hindered progress. The slowdown in oil demand, driven by stricter efficiency standards and the growth of green energy, has also affected the petrochemical market.

While demand for petrochemicals decreased during the pandemic, supply capacity has remained stable and even expanded in places like China, leading to lower prices. In response, the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) implemented oil production cuts to stabilize prices within the petrochemical industry. The production cuts have been extended to 2.2 million barrels per day through Q2 2024, with petrochemical stakeholders from Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, Oman, and Russia participating in the agreement.