The United Arab Emirates has called on the OPEC+ alliance to consider rising global oil demand as it prepares to decide production levels for July. UAE Energy Minister Suhail Mohamed Al Mazrouei made the remarks on Tuesday during a forum in Abu Dhabi.
“OPEC+ is doing its best to balance the market,” Al Mazrouei said, as quoted by Reuters. “But it is not enough. We need the help of others, and we need to be mindful of the demand.”
He warned that if the industry fails to invest in future supply, the market could be caught off guard. “Demand is picking up, and the market is going to surprise us if we’re not investing in it,” he added.
OPEC+ ministers are scheduled to meet on June 1 to discuss oil output plans for July. Sources told Bloomberg last week that the group is considering a third straight monthly increase in production.
In May and June, OPEC+ approved two consecutive hikes of 411,000 barrels per day (bpd), tripling the size of earlier planned increases. A similar boost in output is now under discussion for July among countries that had previously held back production.
The recent production moves highlight a strategy by Saudi Arabia, OPEC’s largest producer, to tolerate short-term price drops. Analysts say this may be aimed at curbing overproduction within the group and applying pressure on U.S. shale producers, who are scaling back drilling due to lower prices near breakeven levels.
OPEC+ includes major oil producers from both within and outside the Organization of the Petroleum Exporting Countries, and its policy decisions have a significant impact on global oil markets.
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