UAE Energy Minister Hails Opec+ for ‘Noble’ Role in Oil Market Balance Amid Rising Tensions

UAE Energy Minister Suhail Al Mazrouei praised Opec+ on Wednesday for its “noble” efforts in balancing the global oil market, despite not being the world’s largest producer of oil. Speaking at an industry event in Fujairah, Al Mazrouei emphasized the sacrifices the group has made to stabilize the market, particularly in light of the challenging global economic and geopolitical climate.

“Opec+ has sacrificed more than others, but the critical element is that it is staying together,” Al Mazrouei said. However, he refrained from offering predictions for the oil market in 2025, citing uncertainties, including geopolitical factors, as key variables that could impact the outlook.

The minister’s comments came as oil prices surged on Wednesday due to escalating concerns over rising tensions in the Middle East. The increase followed Iran’s most significant military strike against Israel, fueling fears that the conflict could disrupt crude output in the region. Brent crude prices rose by over a dollar, reaching $74.56 per barrel at 7:30 a.m. UAE time.

Al Mazrouei’s remarks also precede an online meeting of top ministers from the Organization of the Petroleum Exporting Countries and its allies, known collectively as Opec+. The Joint Ministerial Monitoring Committee (JMMC) is set to convene at 4 p.m. UAE time on Wednesday, but sources from the group have indicated that no changes to current production cuts are expected to be recommended at the meeting.

Since late 2022, Opec+ has implemented a series of output cuts, reducing global oil supply by approximately 5.7%. These measures were taken to address concerns over slowing demand and a rise in production from non-Opec+ countries. Despite these efforts, oil prices have seen a significant decline throughout 2024. Last month, Brent crude fell below $70 per barrel for the first time since 2021, driven by worries about weak global demand and increased supply from outside the Opec+ alliance.

Al Mazrouei highlighted the importance of the group’s unity in maintaining market stability amid these fluctuations. “The key is that Opec+ is remaining cohesive,” he said, underscoring the collective commitment to sustaining balance in the global oil market, despite challenges.

The outcome of the JMMC meeting will be closely watched by market observers, as any potential changes to production policy could impact future oil prices, particularly in the context of rising geopolitical tensions in the Middle East.