Weeks after the Organization of Petroleum Exporting Countries(OPEC), shocked the crude oil market by announcing a round of large production reductions.
The United Arab Emirates (UAE) Energy minister, Suhail Al Mazrouei, has played down the need for further cuts to balance supply and demand.
Al Mazrouei, spoke with journalists in Abu Dhabi, on whether further OPEC+ supply reductions are needed.
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He said: “I’m not that worried about the very, very short term. Let’s wait. This is not a prediction that I can give now or a decision, this is a collective decision”.
Al Mazrouei’s statement is coming amid the current upheaval going on in the global crude oil space about the OPEC+ slash.
OPEC and its allies are currently proceeding with preparations for an in-person meeting at its Vienna headquarters next month.
This year alone, crude has retreated more than 9%, with futures whipsawed by the Federal Reserve’s monetary-tightening campaign, concerns of a U.S. recession, and countervailing hopes for a resurgence in Chinese demand.
The decline in prices has come despite last month’s surprise production cut by the the organisation and its allies including Russia.
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Al Mazrouei warned that the bigger risk to supply was the weak level of investment over the coming years.
“If we don’t see companies and countries investing, we could see a shortage in the future,” he said.
Since UAE is the third biggest crude oil producer within the group, a further reduction is likely going to affect its economy adversely.
