UAE Energy Minister Suhail Al Mazrouei expressed confidence in OPEC+’s efforts to stabilize the oil market during a meeting of energy ministers in India. He emphasized that the group’s actions are aimed at balancing demand and supply for the benefit of all consumers and producers worldwide. Despite market analysts’ concerns about elevated crude oil prices and potential impacts on demand, Al Mazrouei remained unconcerned about oil demand but pointed out limited investment as a significant challenge.
Goldman Sachs projected record demand for oil, leading to higher crude prices in the near future. The bank estimated that Brent crude could rise from its current level just above $80 per barrel to $86 per barrel by the year-end. Saudi Arabia had already implemented an additional production cut of one million barrels per day from July 2023. In May, OPEC+ reduced oil production by 1.6 million bpd for the year 2023.
The upcoming OPEC+ policy meeting is scheduled for November, and a panel of key ministers will hold an online meeting on August 4 to review the market. The International Energy Forum’s Secretary General, Joseph McMonigle, predicted a demand pick-up of 2.0 million barrels per day in the second half of 2023 from both India and China.
Despite the G20 energy ministers’ meeting in India, there was no consensus reached on the phasing down of fossil fuels, complicating the transition towards clean energy. This lack of agreement signals significant uncertainty about long-term oil demand.