OPEC+ ‘only a phone call away’ if markets need balancing – UAE minister
According to the UAE energy minister on Monday, OPEC+ is always ready to balance crude oil markets, in the event they are needed. Consumers can always contact the alliance of top producers for assistance if they need it. He said the alliance is “just a phone call away” if its assistance is required.
The heads of OPEC+, which includes the producer bloc with allies such as Russia, such as Suhail al-Mazrouei, said at a major industry event held in Abu Dhabi that they could always be trusted to balance the supply and demand of oil. As he outlined in the letter, if the requirements are there, then we are only a phone call away.
A decision made by the U.S. administration to cut oil production in October led to one of the biggest clashes with OPEC+ with the West. This clash was one that the United States administration called shortsighted. After the United States accused Saudi Arabia of pushing members into a crude oil production cut, OPEC+ producers rallied around Saudi Arabia, the top oil exporter in the group.
During the next meeting of the Group of Seven nations, which is scheduled for December 4, the group will discuss the implementation of an agreement by the group to cap Russian oil sales at an enforced low price, which is due to be implemented the following day.
During this time, top oil company CEOs and ministers of energy have also gathered in Abu Dhabi to discuss investment in oil and gas, crude markets, energy prices, economic growth as well as the impact of Russia’s invasion of Ukraine on the development of the global oil market.
Amos Hochstein, who is the U.S. energy envoy, spoke at the conference on Monday. He stated that energy prices must be set in such a way as to allow for economic growth. He stressed that the oil and gas sector needs to attract more investment.
He was keen to emphasize that the investments made by the United States and other countries were not enough. I believe we must all invest and innovate in the energy sector, regardless of where we fall on the energy spectrum,” he told us.
As Hochstein noted, US-UAE relations are “strong, long-standing and enduring”, which is a testament to the country’s commitment to the region. Announcing the spat with OPEC+, he said to reporters: “We are allowed to disagree with each other, but we should respect each other’s opinions.” Despite what many people think, there is actually a lot less drama than people think.”
An annual outlook released by the Organization of Petroleum Exporting Countries (OPEC) on Monday raised its estimates for the world’s oil demand in the medium- and long-term and stated $12.1 trillion will be needed to meet this demand despite the energy transition in the world.
According to the World Oil Outlook released by the Organization of the Petroleum Exporting Countries (OPEC), the oil demand will peak before 2030 due to the advent of renewable energy and electric cars. That view contrasts with one expressed by other forecasters, who predict a plateau in oil demand before 2030.
According to Saudi Energy Minister Prince Abdulaziz bin Salman, the two biggest oil producing countries in the world, Saudi Arabia and the UAE, have increased their oil production and refineries, along with developing clean hydrogen, in response to current oil prices.
“We have committed to be exemplary producers and we will join hands with the UAE in doing so,” he added.
As of 2023, the UAE will release its first revision of its energy plan, which will include a higher level of green targets, Mazrouei told Sputnik.
In the next update, we are expecting that we will have a more significant focus on green sources of energy,” he said in conclusion. In terms of the target, we will see it. As for the expectation, I am optimistic that the contribution of renewable energy will be increased upon seeing the target.”
There are reports that the Abu Dhabi National Oil Co (ADNOC) CEO Sultan al-Jaber stated earlier this week that the company would lose 5 million barrels of oil per day from current supplies if it zeroed out hydrocarbon investment because of natural declines.
Consequently, the shocks we have experienced over the course of this year will seem less like a major earthquake, according to Jaber.
In order to meet the world’s energy demands, there must be maximum efficiency and minimum emissions.
It is becoming further evidence that the international supply chain remains fragile, while geopolitics are becoming increasingly complex, fragmented, and polarised, as he points out.
Source- Reuters
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