UAE Energy Minister expresses concern over global oil supply
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UAE Minister of Energy Suhail Al-Mazroui expressed concern about the situation with the supply of oil in the world. He stated this at the OPEC seminar in Vienna, writes Interfax.
“I’m not worried about demand, I’m really worried about supply,” the minister said.
He cited data that 100 million barrels. the world consumes per day, it is necessary to replace 8 million barrels per day to remain at the same level. This requires investment. According to him, 23 OPEC+ countries have lost more than 3 million barrels per day of oil production since 2020 due to lack of investment. Al-Mazrui called for investment in African countries.
The minister warned that forecasts of a peak in oil consumption do not come true. In 2023, the growth in oil consumption may reach 2%, while earlier the figure was at the level of 1-1.5%. “We heard stories about the peak of consumption five and ten years ago, but the numbers show that these forecasts were not correct. We know better because we represent 40% of the global supply and interact directly with customers and understand the behavior of the market,” said Al-Mazuri.
In July, Russian Deputy Prime Minister Alexander Novak said that Russia would voluntarily further reduce oil exports by 500,000 barrels per day in August by cutting exports by the designated amount. Russia committed itself to a voluntary reduction in oil production by 500,000 barrels per day in February this year. Initially, it was about reducing production in March by February. But then these obligations were extended until July, and later until the end of 2023.
Since May 1, eight more countries participating in the OPEC+ agreement have joined the voluntary production cuts. As a result, an additional total reduction in production by these countries will amount to 1.66 million barrels per day until the end of the year.
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