UAE Energy Minister says oil market is steadily absorbing OPEC+ output hike

Oil markets are absorbing OPEC+’s production hikes without a significant rise in inventories, signaling steady demand, according to UAE Energy Minister Suhail Al Mazrouei. Between April and July, the alliance gradually ramped up output, starting with an initial increase of 138,000 barrels per day (bpd), followed by monthly rises of 411,000 bpd. In August, OPEC+ is set to deliver a record 548,000 bpd surge in production.

Higher output offset the growing demand, preventing a surplus. Al Mazrouei highlighted the importance of balancing prices and sector investments. He pointed out that if prices drop too low, they discourage investment, whereas higher ones spur the development of new projects.

OPEC+'s decision to increase production came in response to pressure from the US. President Donald Trump had been pushing for lower fuel prices. However, the UAE Energy Minister urged against short-term measures, emphasizing the need for a long-term strategy that maintains investor confidence and ensures sustainable growth of the industry.