A key OPEC+ minister played down the need for further cuts to balance supply and demand, weeks after the organization shocked the oil market by announcing a round of major production cuts.
“I’m not that worried about the very, very short term,” Suhail Al Mazrouei, the UAE’s energy minister, told reporters in Abu Dhabi on Tuesday. “Let’s wait. That’s not a prediction I can give now or a decision, it’s a collective decision,” on whether more OPEC+ supply adjustments are needed, he said.
OPEC and its allies are currently proceeding with preparations for a face-to-face meeting at their headquarters in Vienna next month. The United Arab Emirates is the group’s third largest producer.
Crude oil has retreated more than 9% this year, with futures hit by the Federal Reserve’s monetary tightening campaign, concerns of a U.S. recession and offsetting hopes of a resurgence in Chinese demand The drop in prices has come despite a surprise output cut last month by the Organization of the Petroleum Exporting Countries and its allies, including Russia.
Al Mazrouei warned that the biggest risk to supply was the weak level of investment in the coming years. “If we don’t see companies and countries investing, we could see a shortage in the future,” he said.
–With assistance from Andrew Reierson.
