OPEC+ doing ‘noble’ job of balancing oil market, says UAE

UAE Energy Minister Suhail al-Mazrouei said on Wednesday OPEC+ was doing a noble job of balancing the oil market even if does not produce the majority of oil in the world.

“OPEC+ has sacrificed more than others but the critical element is that it is staying together,” Mazrouei said at an industry event in the emirate of Fujairah.

“I would like you to imagine the world without this group. We would be in chaos,” Mazrouei added.

His comments echo those of Russian Deputy Prime Minister Alexander Novak, who said on Monday that OPEC+ was strategically reducing oil supply and ceding market share with the long-term aim of helping producing countries secure enough investments and oil prices to suit producers and consumers.

Output from OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies such as Russia, equates to 48 per cent of world oil supply, according to Reuters calculations based on figures from the International Energy Agency.

Mazrouei would not comment on the outlook for oil in 2025, saying that there were many moving parts, including geopolitics.

Oil prices jumped by over a dollar on Wednesday due to rising concerns Middle East tensions could escalate, potentially disrupting crude output from the region, following Iran’s biggest military blow against Israel to date.

“I would refer you to the OPEC outlook because I stopped personally commenting on the short term,” the minister said.

“I think there are so many moving parts of the world, including geopolitics, that put us all on pause when we predict the future. We hope for peace, we hope for prosperity, but facts of life are facts of life.”

Ministers from OPEC+ held an online joint ministerial monitoring committee (JMMC) meeting on Wednesday at 1200 GMT.

Oil prices have fallen in 2024, with Brent crude last month slipping below $70 a barrel for the first time since 2021, pressured by expectations of weaker global demand and rising supply outside OPEC+.

OPEC+ has cut output by around 5.7 per cent of global demand in a series of steps agreed since late 2022.

The group agreed, in September, to delay a planned gradual oil output increase to December from October, saying it could further pause or reverse the hikes if needed.

Read: Oil prices jump as Iran-Israel missile strikes fuel market jitters