UAE Calls for OPEC+ to Boost Oil Supply by 54.8 Thousand Barrels Per Day

The United Arab Emirates has called for a significant increase in oil supply from OPEC+ to meet the needs of the global oil market. The UAE's energy minister, speaking at a conference in Vienna, defended the recent decision to increase production, stating that despite previous supply increases, market inventories have not risen, indicating a genuine need for more oil.

In April, OPEC+ unexpectedly announced an increase of 41.1 thousand barrels per day, followed by further increases in May and June. Last week, the organization announced an additional increase of 54.8 thousand barrels per day. Despite signs of tightening supply, oil prices have risen slightly in response to these decisions.

When asked about concerns of oversupply by the end of the year, the energy minister expressed confidence, stating that each decision is carefully weighed. The minister noted that even with recent supply increases, inventories have not significantly risen, suggesting that the market requires these additional barrels.

The UAE's energy minister emphasized that OPEC+ is working to stabilize oil prices, as reasonable prices are essential for ensuring investment in the supply side. The minister's comments reflect a broader consensus within OPEC+ that the market needs more supply to maintain stability and meet growing demand.

The decision to increase production is seen as a strategic move to counter the influence of non-OPEC producers, particularly the United States, which has seen a significant increase in shale oil production in recent years. By increasing supply, OPEC+ aims to maintain its market share and prevent a further decline in oil prices.

The UAE's call for increased production comes at a time when the global oil market is facing significant challenges, including economic uncertainties and geopolitical tensions. The decision to increase supply is seen as a proactive measure to address these challenges and ensure the stability of the global oil market. The UAE's energy minister has expressed confidence that the market will remain balanced, despite the recent increase in production.