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UAE: Oil markets absorb more barrels, but stocks are not rising

Suhail al Mazrouei, United Arab Emirates Energy Minister, said that oil markets were absorbing OPEC+ increases in production without building up inventories. This means they were thirsty for even more oil.

OPEC+ has cut production to support the oil market for many years. It reversed its course in order to gain market share, and after U.S. president Donald Trump asked the group to pump more oil to keep gasoline prices low.

OPEC+ started to reverse its 2.17 million barrels a day cut in April, with a 138,000 bpd increase. In May, June and Juli each month saw increases of 411,000 barrels per day. The group approved on Saturday a 548,000-bpd increase for August.

Mazrouei stated that he is not concerned about the supply overhang, even after recent production increases.

He said: "You can see, even though we've seen increases in the past few months, there hasn't been a significant buildup of inventories. This means that the market required those barrels."

You cannot look at price alone and be shortsighted. "Investments can only happen if the price is right," he said. He added that even countries with large oil reserves do not invest enough. Reporting by Ahmad Ghaddar. Dmitry Zhdannikov wrote the article. Emelia Sithole Matarise, Mark Potter and Emelia Sithole Matarise edited the book.

(source: Reuters)