OPEC+ Can Be Trusted To Balance Markets, UAE Minister Says

October 31, 2022

The United Arab Emirates' energy minister said on Monday that OPEC+ is keen on providing the world with the oil supply it needs, driving home the message that the alliance of top producers will always be in a position to balance markets.

OPEC+ will always remain a trusted technical organisation to balance oil supply and demand, said Suhail al-Mazrouei at a major industry event in Abu Dhabi.

"We are only a phone call away if the requirements are there."

U.S. energy envoy Amos Hochstein said that energy has to be priced in a way that allows for economic growth and that more investment is needed in the oil and gas sector.

Speaking at the same conference, Hochstein added that the relationship between the United States and UAE is "strong, long-standing and enduring".

In October, OPEC+ agreed steep oil production cuts, curbing supply in an already tight market and causing one of its biggest clashes with the West as the U.S. administration called the surprise decision shortsighted.

OPEC+ producers rallied around Saudi Arabia after the United States accused the kingdom of pushing OPEC+ nations into the output cut.

Saudi Arabia and the United Arab Emirates, two of the world's biggest oil producers, are boosting output and refining and working on clean hydrogen, Saudi Energy Minister Prince Abdulaziz bin Salman said on Monday.

"We and the UAE are going to be the exemplary producers," he told a major industry event in Abu Dhabi.

Abu Dhabi National Oil Co (ADNOC) Chief Executive Sultan al-Jaber said earlier that zeroing out hydrocarbon investment due to natural decline could lead to a loss of 5 million barrels of oil a day per year from current supplies.

"The data is clear. If we zero out hydrocarbon investment ... due to natural decline ... we would lose 5 million barrels per day of oil each year from current supplies. This would make the shocks we have experienced this year feel like a minor tremor," Jaber said.

The world needs maximum energy and minimum emissions, he said.

"Here are the hard facts: Global supply chains continue to be fragile. Geopolitics are now more complex, fragmented and polarised than ever," he said.

Source: Reuters
Image source: Arabian Business

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