UAE Is Committed With OPEC+ Deal Returning Oil Prices to Normal

United Arab Emirates (UAE) is fully committed to the OPEC+ deal on oil production cuts during June to restore oil prices, according to UAE Energy Minister.

17 June, 2020 | AtoZ MarketsOPEC+ has agreed on an unprecedented cut in production, which could restore prices, says the UAE energy minister, Suhail bin Mohammed Faraj Faris Al Mazrouei. “The UAE is progressing its production capacity build-up project of the five million barrels per day by 2030” and “in April we reached a new milestone of 4.2 million barrels per day,” he said.

UAE Sees Oil Prices Soon Back to Normal on OPEC+ Deal

Mr. Mazrouei said the oil price would be reasonable within one or two years as curbs close to 10 million barrels a day drain excess barrels from the market. He said:

“We have seen excellent signs of demand picking up. We have seen numbers of driving vehicles are picking up.”

“While the UAE successfully achieved production of over four million barrels a day in early April, it has subsequently reduced its production in line with the OPEC+ agreement,” he said. “In support of efforts led by the Kingdom of Saudi Arabia to further restore stability to energy markets, the UAE has committed to undertake an additional voluntary cut of 100,000 barrels per day in June”.

Crude oil prices still depend heavily on whether there is a second wave of coronavirus pandemics. The economy is forced to shut down again. He also added:

“Are we going to have a second wave or not? I hope not. I hope we’re not going to limit travel and we will go back to at least a reasonable consumption level. Now we are back to the consumption level of 2013, believe it or not.”

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