By Staff writer
Dr. Sultan Ahmed Al Jaber has warned the path to new normal 'is not a straight line'
Dr. Sultan Ahmed Al Jaber, UAE Minister of State and group CEO of the Abu Dhabi National Oil Company (ADNOC) believes there are signs that oil markets have tightened in recent weeks and will rebalance over time.
Speaking on ADNOC’s "Virtual Majlis" with Helima Croft, managing director and global head of commodity strategy at RBC Capital Markets, Dr. Al Jaber said that while the outlook remains unpredictable, there are reasons for cautious optimism in oil markets.
"When it comes to oil, there are signs that the market has tightened in recent weeks. The OPEC+ agreement, voluntary cuts outside OPEC-++, and production shut-ins are working together to start to rebalance the market. This will take time. As economies begin to open up, demand will follow, but the path to the next normal is not a straight line," he said.
Dr. Al Jaber continued by highlighting how ADNOC is reaping the benefits of its transformation over the past four years as it navigates this period of uncertainty.
"We are seeing the benefits of the steps we have taken on over the last four years. In fact, this crisis has highlighted just how forward-thinking our leadership’s guidance has been in directing this transformation. As a result, ADNOC is now far stronger and better positioned to manage the current market dynamics,” he said.
"Through our transformation, we have focused on what we can control and that is our costs. We’ve been laser-focused on being one of the lowest-cost producers in the world. And this has given us the flexibility and the resilience that we need at times like these. In this environment, we are continuing to work even harder to preserve our resources, and maximize our profitability."
The UAE is to voluntarily cut its oil output by 100,000 barrels per day in June in a show of solidarity with neighbours Saudi Arabia.
The kingdom announced on Monday plans to cut its oil production next month by an extra one million barrels per day – on top of the reduction already committed to as part of the OPEC+ agreement signed last month.