The UAE’s Energy Minister Suhail Al-Mazrouei on Monday said that crude oil prices might double today’s level or even triple if it was not for OPEC+. The statement signals that OPEC+ would continue resisting calls from the US and other consuming nations for more supplies to curb the ongoing price rally. Brent crude oil futures have climbed 62% since the start of 2020 to nearly $84 per barrel owing to the global economic recovery from the COVID-19 pandemic and OPEC+ cautious supply policy.
OPEC+ producers have agreed to taper their coordinated supply cuts launched last year by 400,000 bpd each month, which is too slow according to the US, Japan, India, and other importers. Mazrouei said if it was not for OPEC+, the oil market would experience similar turbulence in the gas and coal markets. He also blamed the current high prices for the lack of investments in fossil fuels amid a hasty transition to renewable energy. He added that the group should remain cautious as the oil market is expected to swing to a surplus in the first quarter of 2021 due to demand softening.
