Since November, the group has been implementing oil output reductions in response to declining oil prices. With the UAE now indicating that it will not be implementing further voluntary production cuts, it remains to be seen how this decision will impact OPEC+ efforts to balance the global oil market.
The United Arab Emirates (UAE) has announced that it will not be implementing any additional voluntary oil production cuts as a part of the OPEC+ agreement. The country’s Energy Minister, Suhail Al Mazrouei said that the UAE believes that its current efforts are sufficient in contributing to the supply curbs set by OPEC+.
Speaking to reporters in Vienna, Minister Al Mazrouei highlighted the significant disparity between the UAE’s current oil output and its full production capacity. The minister emphasized that the recent additional cuts in oil production and exports by Saudi Arabia and Russia should effectively help stabilize the global oil market.
Both nations surprised the market by announcing cuts last month, with Saudi Arabia committing to an additional 1 million barrels per day reduction, and Russia pledging to curtail exports by 500,000 barrels per day in August.
OPEC+ is a collective forum of oil-producing nations, including the Organization of the Petroleum Exporting Countries (OPEC) and its allies such as Russia. Together, they account for approximately 40% of the world’s crude oil production.
Since November, the group has been implementing oil output reductions in response to declining oil prices. With the UAE now indicating that it will not be implementing further voluntary production cuts, it remains to be seen how this decision will impact OPEC+ efforts to balance the global oil market.
The focus will likely to shift to other member countries to gauge their stance on additional cuts or whether they deem their current contributions sufficient to meet the objectives of the agreement.