Abu Dhabi — The United Arab Emirates’ energy minister Suhail al-Mazrouei said on Tuesday that additional voluntary output cuts by the OPEC+ producer group were implemented to balance the oil market.
Mazrouei, who briefed reporters on the sidelines of the World Utilities Congress, said he was concerned about future supply shortages due to low investment.
“I’m not that worried about the very short term, I think we can manage balancing the supply with demand. I’m more worried about the level of investment required for years to come,” he said.
In a surprise move in early April, Saudi Arabia and other OPEC+ members announced further oil output cuts of around 1.2 million barrels per day.
The announcement helped push oil prices sharply higher, but those gains have since been erased as fears of a global economic slowdown spook investors.
Brent crude prices were trading at just over $76 a barrel on Tuesday, well below a recent high of $87.49 hit on April 12.
The Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+, are set to meet in Vienna on June 4 to decide on their next course of action.
*Maha El Dahan, Ahmad Ghaddar; Editing: Kevin Liffey – Reuters
Follow us on twitter