As per the United Arab Emirates, the reduction of oil production in many countries and the potential of inadequate crude supply will be a bigger problem for the oil market in the coming year than its demand.
The Energy Minister of the UAE, Suhail Al Mazrouei, said on Bloomberg TV on Tuesday, “I am not worried about the demand. The main concern is about getting adequate supplies in the future”.
One of the top energy officials at one of OPEC’s biggest producers and influential members also stated and kept their concern, saying, “What worries me is the reduction that I see in the production of many countries.”
As per Al Mazrouei, the global oil market is currently balanced. This means that the OPEC+ group will not be in a hurry to change the production quotas based on a declaration made by Russia last week, which stated that it could curb its production in March by 500,000 bpd.
As per Kremlin, Russia discussed its strategy to cut production with some members of the OPEC+ alliance, in which Russia is the primary member leading the group of non-OPEC producers.
Although a Russian government source said in the reports that they have yet to consult with OPEC + on this strategy formally.
The supply of oil next year was the primary concern of the UAE, which was the latest statement from the significant OPEC figures who also stated this week that the oil industry has been suffering for many years due to its chronic underinvestment.
Besides, the Secretary General of OPEC, Haitham Al Ghais, said earlier this week that the industry had been plagued by chronic underinvestment for many years. Hence, a climate activist should be called to look at the big picture and allow an energy transition.
CEO of Saudi Aramco Amin Nasser said this weekend that, Environment, Social, and Governance (ESG) investment against the gas and oil industry threatens energy security and affordability.
The report mentioned above states about the oil demand and supply. It states the concern of the UAE about the oil supply shortage in 2024.