OPEC took enough action for market stability: UAE

OPEC took enough action for market stability: UAE

The Opec+ bloc is taking adequate measures for the stability of the oil market, the UAE Energy Minister Suhail Al Mazrouei said in India as market analysts argued that voluntary oil production cuts by oil exporting countries might keep crude oil prices elevated and impact demand.

“I believe what we are doing in Opec+ is adequate and we are addressing that (demand and supply). We are doing this on behalf of all producers around the world and for the benefit of balancing demand and supply for all the consumers as well,” Al Mazrouei said at a meeting in India of energy ministers of the Group of 20 nations in Goa. The UAE minister said he was not worried about oil demand and described limited investment as the biggest challenge.

Al Mazrouei’s remarks came as Goldman Sachs estimated that record demand in oil markets to drive crude prices higher in the near term. “We expect pretty sizable deficits in the second half with deficits of almost 2 million barrels per day in the third quarter as demand reaches an all-time high,” Goldman’s head of oil research Daan Struyven told CNBC. The bank forecasts Brent crude to rise from just above $80 per barrel