On Wednesday, United Arab Emirates energy minister Suhail Al Mazrouei told reporters that additional oil output and export cuts made by Saudi Arabia and Russia earlier this week should help balance the oil market.
OPEC+, a group of the Organization of the Petroleum Exporting Countries and allies, including Russia, which pumps around 40% of the world’s crude, has been cutting oil output since November in the face of sagging prices.
Russia and Saudi Arabia, the world’s biggest oil exporters, deepened oil supply cuts on Monday to send higher prices.
But, the move only briefly lifted the market. On Wednesday, benchmark Brent futures traded more than 1% down at $75.30 per barrel, lower than the $80-$100 per barrel that most OPEC nations need to balance their budgets.
However, Mazrouei told reporters that,(this, the latest addition output cuts) is enough to assess the market and look at the market balance”, adding that the UAE would not be contributing to fresh cuts.