Will OPEC Cut Output Again Amid Plunging Oil Prices? Here Is UAE's Answer

On Tuesday (May 9), local time, the United Arab Emirates' energy minister Suhail al-Mazrouei told the media that he was not so worried about the current short-term situation in the international oil market.

In early April, OPEC+ members unexpectedly announced production cuts, which once pushed up the prices of international crude oil futures significantly. However, this trend did not last long. In the past three weeks, both WTI oil and Brent oil prices have fallen sharply, and both have returned to the level before the "surprise production cut".

Some analysts believe that such a sharp drop in oil prices means that the effectiveness of production cuts is in vain, and they have begun to predict that OPEC+ may do that again. In this regard, Mazrouei said that whether it is necessary to further adjust the supply of OPEC+ is a collective decision.

According to the April Oil Market Report, the UAE produces the third-largest oil production in OPEC, behind Saudi Arabia and Iraq.

"Let's wait, I can't give a forecast yet, it's a collective decision." Mazrouei added that he was not worried about what would happen in the crude market in the short term, as supply and demand could manage to balance.

However, he is more worried that the downturn in investment will lead to a shortage of crude oil supply in the future.

Organization of Petroleum Exporting Countries (OPEC) Secretary-General Haitham Al Ghais previously slammed the International Energy Agency (IEA), saying the IEA should be very careful not to undermine investment in the oil industry.

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