Oil demand could surprise to the upside, UAE energy minister Suhail-al Mazrouei said today.
Speaking at the World Utilities Congress in Abu Dhabi, al-Mazrouei said he felt oil demand "is picking up" and could "surprise us" if investment in hydrocarbons do not pick up. His comments come a few days before the UAE and seven other Opec+ producers meet to decide on production policy for July.
As a collective, the 18 Opec+ producers have implemented three rounds of production cuts that, on paper, took more than 5.5mn b/d of production offline since October 2022. Eight of those producers, including the UAE, have been steadily returning some output since April. The increments returned this month, and to be returned in June, are larger than originally planned, at 411,000 b/d.
The group attributed the larger-than-expected increases, at least in part, to stronger oil demand over the coming summer months.
The group of eight will meet to determine whether to return 137,000 b/d as planned, or opt for another 411,000 b/d. Mazrouei today would not be drawn on what the group might do.
"This [Opec+] group… is doing its best to balance the market, and ensure that we have enough investments in supply," he said. "If this group was not there, there would be chaos. If it was not making sacrifices, especially the group of eight… we would not have balance; you would be seeing shocks.
"So rest assured, this group is doing its best," he said.
The meeting is scheduled for 1 June, although Opec+ delegate sources say it will very likely brought forward to 31 May, just as happened last time.
