UAE’s energy minister, Suhail Al-Mazrouei, who’s now OPEC president, said Thursday rising oil prices are reflecting positive market sentiment, but a correction in the market remains a work-in-progress, with rebalancing expected to happen sometime this year.
Speaking to the media at an energy forum in the UAE, Al-Mazrouei said, “I have no doubt that the market needs further correction. We still have more than 100 million barrels that needs to be taken care of.”
“There is of course a positive market sentiment that we’re seeing today … . The market is balancing and this is what we’re saying, the issue is the timing and how long it will take,” he said.
The official is confident OPEC and non-OEPC compliance will remain high, while also noting “there are dynamics” for other countries to join the pact. He referred to the producing countries attending November’s meeting as observers, Kallanish Energy notes.
He also said OPEC isn’t concerned about a potential supply disruption shock due to crude output declines in Venezuela and political unrest in Iran. “We’re not worried we will have a big shock … we can help each other,” he said.