UAE Energy Minister: OPEC+ make every effort to balance the oil market
UAE Energy Minister Suhail Al Mazrouei said today, Tuesday, that the OPEC+ Group is doing its best to balance the oil market, but it needs to pay attention to increasing the demand.
The OPEC+ coalition does not spare an effort to balance between supply and demand in the oil market, and to ensure the adequacy of investment in supplies, and had it not been for the sacrifices he made, the chaos would have spread the markets, according to the UAE Minister of Energy, before a meeting of the coalition in which the policy of producing member states for the month of July was discussed.
OPEC+, which includes the Organization of Petroleum Exporting Countries (OPEC) and other allies such as Russia, have made several decisions since 2022 to reduce production to support the market.
The group, which intends to hold a ministerial meeting with all members tomorrow, Wednesday, began canceling some discounts in April. It agreed to increase the expectations of production in May and June.
He said: “If this alliance does not exist to chaos, if this alliance did not make sacrifices, especially the group of eight countries, the market would not have to enjoy balance, and we would see shocks, and this is not good for consumers,” according to what Al Mazrouei said during a session at the World Conference of Facilities held in Abu Dhabi today, Tuesday.
The request is rising
The UAE Minister of Energy refers to 8 members of OPEC+, which are Saudi Arabia, Russia, Iraq, the Emirates, Kuwait, Kazakhstan, Algeria and the Sultanate of Oman, which announced additional voluntary discounts in production in 2023 by 2.2 million barrels per day, unlike discounts at the level of the whole alliance with the aim of supporting the stability of energy markets.
The Emirati minister said, “We must be aware of the demand, which will rise, and the demand will surprise us if we do not invest enough,” the Emirati said.
Al Mazrouei stressed that the coalition is doing its best to control the market, pointing at the same time the need to support what it described as other parties, which he did not name.
Al Mazrouei explained that there is “a very strong growth in the demand for electricity for databases.”
In response to a question about oil production plans in July, “This group, OPEC+, is doing its best to achieve a balance in the market and ensure sufficient investments in supplies.”
“Reassure, this group is doing its best, but this group alone is not enough, we need to help others, and we must pay attention to the demand, it is a rise, and the market will surprise us if we do not invest in it.”
The “OPEC+” coalition agreed to enhance the oil production that stops in May and June next by 411 thousand barrels per day, exceeding previous expectations.
