UAE Energy Minister: No Oil Glut, Demand Stays Strong - As-Salaam Alaikum
As-salaam alaikum. Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure, said there’s no oversupply of oil right now because demand is holding up strongly, especially with growth in AI and data centres. He told delegates at the energy conference in Abu Dhabi that countries like the UAE are investing because the demand is clearly there.
After Opec+ - which includes Saudi Arabia, Russia, the UAE and other producers - agreed to raise output by 137,000 barrels per day next month, Mr Al Mazrouei noted this is part of a gradual unwinding of cuts made two years ago. It was the group’s ninth production increase this year; they had paused hikes in January through March because of seasonal lower demand.
“We will need more resources - more oil, more gas and more renewables. With AI and data centres, we need more oil,” he said, and he emphasised that the oil and gas sector needs continued investment to meet rising demand.
Also speaking, Opec secretary general Haitham Al Ghais said global economic growth is supporting oil demand. He pointed to significant stock draws and recent reports of large inventory declines in the US, noting that global stocks remain below the five-year average. He said the pause in production increases for the first quarter is a responsible move to keep supply and demand balanced given seasonal patterns.
Markets reacted with a small rise in oil prices after the decision to hold off on early‑year increases. Analysts expect Brent to stay roughly in the $60–$70 per barrel range. Observers also noted that geopolitical tensions and sanctions can cause volatility, and recent sanctions on some producers earlier this year sparked notable price moves.
For those following regional industry developments: the UAE and neighbouring countries continue to adapt their energy strategies, balancing investment in hydrocarbons with growth in renewables to meet both current demand and longer-term goals.
https://www.thenationalnews.co