…As more EU members stand up to defend output reduction
United Arab Emirates’ [UAE] minister of energy and infrastructure, Suhail Al Mazrouei, has said that the decision by OPEC+ to slash oil output was “technical” and meant to “stabilise” crude oil prices.
“We truly trust and believe in the technical credibility of the OPEC and OPEC+,” told reporters during a conference before the start of ADIPEC Technical Conference on Tuesday.
The ADIPEC Technical Conference is the world’s largest technical meeting place for oil, gas and energy engineers worldwide, providing unprecedented access to the latest industry knowledge, technical expertise, applications, products, solutions and services.
Earlier this month, the 23-member OPEC+ alliance slashed its crude output by 2 million barrels per day amid signs of a global economic slowdown.
The move, which drew the US against the Saudi Arabia, led to a more than 10% surge in global oil prices. On Tuesday, oil edged lower as the prospect of additional supplied from strategic reserves eased market concerns of a tight market heading into the winter season.
Brent, the benchmark for two thirds of the world’s oil, was trading 3.03% lower at $88.84 a barrel at 6.49pm UAE time on Tuesday. West Texas Intermediate, the gauge that tracks US crude, was down 3.91% at $82.12 a barrel.
“We are against the rumors that this is political …..we always meet and discuss the facts and how we can all contribute to taking the right measures to balance the supply and demand,” Al Mazrouei said.
“The decision is always taken unanimously and the same approach was taken in the last meeting,” he said. According to The National, other OPEC+ members have also stepped up their defence of the group’s decision.
Algerian energy minister, Mohamed Arkab has called the decision of OPEC+ a “purely technical” response to the international economic situation. On the other hand, Bahrain’s ministry of foreign affairs expressed solidarity with Saudi Arabia and “its refusal to politicise the OPEC+ decision” on production cuts.
On Sunday, Oman’s energy ministry said that OPEC+ decisions were based on purely economic considerations and the realities of supply and demand in the market. Mazrouei also said that countries needed to increase their oil and gas spending as a global energy shortage looms.
“Many countries have lost production capacity and they are in decline now,” he said. Adnoc, which is responsible for most of the UAE’s crude oil production, aims to boost its capacity to 5 million bpd by 2030 amid growing global demand for oil and gas with a lower carbon intensity.