UAE producing close to maximum capacity based on OPEC+ baseline, says Minister of Energy

The UAE is producing near to its maximum production capacity, based on its current OPEC+ production baseline, its energy minister has said.

”In light of recent media reports, I would like to clarify that the UAE is producing near to our maximum production capacity based on its current OPEC+ production baseline (3,168 mbopd), which [the] UAE is committed by until the end of the agreement,” Suhail bin Mohammed Al Mazrouei, the UAE’s Minister of Energy and Infrastructure, stated.

In light of recent media reports, I would like to clarify that the UAE is producing near to our maximum production capacity based on its current OPEC+ production baseline (3,168 mbopd) which UAE is committed by until the end of the agreement.

— سهيل المزروعي (@HESuhail) June 27, 2022

Oil rose for a third session as threats to global output risked tightening the market further before OPEC+ meets this week to discuss supply.

West Texas Intermediate futures climbed above $110 a barrel after adding about 5 per cent over the past two sessions. Libya is facing more disruptions to its exports due to a worsening political crisis, while anti-government protests in Ecuador threaten to shut down production in the former OPEC member.

Any halt to supply could reverberate through the global oil market, which has been squeezed by an economic rebound and upended trade flows from Russia. Some OPEC+ members have struggled to meet their production targets this year, exacerbating the tightness.

Oil is up almost 50 per cent this year, although fears of a global economic slowdown have put futures on track for the first monthly loss since November. However, time-spreads that traders watch as indicators of supply and demand are flashing bullish signs and pointing to an urgent need for more supply. The Energy Information Administration said the timeline of publication of its Petroleum Status report that was scheduled to come out last week is still unclear. Timing of its release will be provided “as soon as possible.”

With inputs from Bloomberg