Oil prices have surged more than 60 per cent for this year but 2022 will be a year of recovery and balance, a top minister said in Abu Dhabi on Monday.
“We have to look at data, fundamentals. And the fundamentals suggest we are moving towards recovery. Actually, we will be in an environment of oversupply starting from the first quarter. We will see a balance. The year 2022 is going to be a year of balance, after the turbulences that we have seen this year in terms of variations in price,” Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Infrastructure, said during a panel discussion at the of Abu Dhabi International Petroleum Exhibition Conference (Adipec).
Al Mazrouei noted that the Organisation of Petroleum Exporting Countries (Opec) is a technical organisation and not a political one.
“People need to trust this organisation,” he said. “We are not targeting the price. It has never been the intent. The intent was to have a reasonable pace of recovery and growth for the world coming from this catastrophic pandemic.”
Prince Abdulaziz bin Salman Al Saud, Minister of Energy, Saudi Arabia, noted that energy security is most important element to watch out for and the Opec+ has delivered on sustainability and transparency.
“I cannot think of a place on the planet earth today that we should celebrate the cohesion of Opec+ than this event and this country. The responsible 23 countries have delivered. We have delivered more remarkably than any other group, show me anywhere on planet earth including central bankers, that delivered more sustainability.”
Meanwhile, Al Mazrouei underlined that the UAE will continue to invest in the energy sector for stable global markets.
“Egypt and UAE are hosting COP27 and COP28 that tells you about the commitment of the oil-producing nations and the Middle East. It shows the commitment to net-zero and to participate with the rest of the world. But we have to be pragmatic about the need of the supply for the transition,” Al Mazrouei added.
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