UAE sees oil supply surplus by Q1 2022

Suhail bin Mohammed Faraj Faris Al Mazrouei said the UAE will invest in the energy sector for stable global markets

Suhail bin Mohammed Faraj Faris Al Mazrouei ruled out the possibility of oil prices reaching $100 per barrel. — File photo

Issac John

Published: Mon 15 Nov 2021, 7:50 PM

Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Infrastructure, said on Monday that all indications point to an oil supply surplus in the first quarter of 2022.

“2022 will be a year of balance between supply and demand. The UAE will invest in the energy sector for stable global markets. It is important to have a balance between supply and demands in the oil and gas markets by having cooperation between the countries to achieve a reasonable pace of growth,” he said during a ministerial panel titled ‘the new world of energy’ at ‘Adipec 2021’.

“Today we are seeing a shortage and it’s not unexpected because of what is happening to all the fossil fuels,” he said adding that he expected Opec+ would likely stick to the current production policy when it next meets in early December.

Al Mazrouei, speaking earlier to reporters at Adipec, ruled out the possibility of oil prices reaching $100 per barrel.

Opec and its allies agreed earlier this month to stick with plans to raise oil output by 400,000 bpd from December, despite calls from the US for extra supply to cool rising prices.

According to oil market analysts, the Opec decision to stick to its plan to gradually increase production each month may not only lead to a surplus in global supplies as early next year but also help to pull Brent crude prices down by around 15 per cent by the end of 2022.

Al Mazrouei said that selecting Egypt and the UAE to host COP27 and COP28, shows the world’s appreciation for the efforts of climate change and net-zero emissions in the Arab region, specifically oil-producing countries, and the Middle East.

He affirmed that UAE is a critical player in the global climate efforts and a global centre to support the green economy and environmental conversation.

The energy minister said that the UAE has plans and initiatives for national climate change to achieve zero emissions by 2050, making the country the first in the Middle East and North African nation to do so.

“The UAE is an oil-producing country and it has major concerns about clean energy. We put early initiatives and ambitions plans to move to for new era aim to have various energy sources and preserving the environment. We will lead not only follow with our commitment and will show the world that we can pave the road for practical and sustainable economic growth and cautions about the environment,” Al Mazrouei, added.

— issacjohn@khaleejtimes.com