UAE Minister of Energy and Industry and President of the OPEC Conference Suhail Mohamed Al-Mazrouei said Friday the global economy is strong, oil demand remains robust, the market is evidently rebalancing.
The market has also continued to see the firm and unwavering resolve from OPEC and non-OPEC participants in the “Declaration of Cooperation”, he said in an address during 174th Meeting of the OPEC Conference in Vienna.
“This is reflected in the unprecedented overall conformity levels we have seen from participating countries,” he said.
Al-Marzouei thanked OPEC’s Economic Commission Board, for their guidance in this process, and the Joint Ministerial Monitoring Committee (JMMC), the Joint Technical Committee (JTC) and the OPEC Secretariat, which have all assisted in the effective and efficient implementation of the “Declaration of Cooperation”.
The declaration fully demonstrates OPEC’s commitment to sustainable market stability, he said, pointing to member states’ vital role in returning optimism to the oil market; one that is central to global economic well-being.
It has also caused a significant change in industry-wide and public perceptions of OPEC. The Organization has ably demonstrated its credentials as a body committed to international cooperation, working with other producers, honouring its commitments and promoting respect among all nations, he noted.
The UAE energy minister went on saying:
“Our focus today is on reviewing all the market fundamentals to help better understand the market balance and stability we all desire, in the interests of producers, consumers and the global economy.” He stressed that the focus is on making sure that the market is both well-supplied and balanced. This also includes looking beyond the short-term, with a specific focus on investments.
“So far in 2018, the pace of investment has gradually picked up, but we are still not seeing enough robust investment in long-cycle projects.? These are the baseload of future supply, the foundation of this industry’s future, and will be vital to long-term global economic expansion,” he noted.
To put this into some perspective, in the period to 2040, the required global oil sector investment in OPEC?’s World Oil Outlook is estimated to be USD 10.5 trillion, with oil demand set to surpass 111 million barrels a day by 2040, he added.
Finally, the president of the conference underlined that every effort should be made to avoid a potential supply gap that could present a future serious challenge.
Source: Kuwait News Agency