tag

The UAE’s shock decision to leave Saudi-dominated OPEC was not targeted at anyone, the UAE minister who heads the state oil giant said yesterday. The move aimed at focusing on national priorities and the UAE economy, said Sultan Al Jaber, who is ADNOC’s CEO and the country’s industry and advanced technology minister. The decision, which took effect on Friday, followed months of tensions with neighbouring Saudi Arabia, the world’s top oil exporter and de facto leader of OPEC, over foreign policy, oil output and the Middle East war, which has strained Gulf economies. A close partnership between the Gulf nations has turned into open rivalry since a public falling out in December over Yemen, but the minister said the decision to withdraw from the oil cartel was not aimed at any nation. “The United Arab Emirates’ sovereign decision to reposition itself within the global energy landscape, and to exit OPEC and OPEC+, is not a decision directed against anyone,” he told a conference in Abu Dhabi. The exit of the UAE, which was OPEC’s fourth-largest producer, dealt a blow to the cartel’s ability to control oil prices.It also further strained UAE-Saudi ties, which plunged after their row over Yemen in December, according to analysts. The two sides have long been at odds over OPEC production quotas. Leaving OPEC “serves our national interests and long-term strategic objectives, aligns with our industrial, economic, and developmental ambitions, and gives us greater ability to accelerate investment, expand, and create value”, Jaber said. “This move was not done in isolation,” he said at the Make It In The Emirates conference on UAE industry. “It is part of a broader effort to reshape our economy and industrial base through a vision that connects energy, technology, and industry, aligning our resources with national priorities to build a stronger, more resilient economy.” While the UAE is not the first country to leave OPEC, it is by far the biggest producer to do so. The UAE has long been frustrated with OPEC’s quotas, which sought to cap Emirati production at 3.4 million barrels a day. Abu Dhabi seeks to expand the UAE’s production capacity to five million barrels a day by 2027. On Sunday, ADNOC pledged to spend $55 billion on new projects over the next two years.The added revenue from oil sales would allow the UAE to step up its investments in artificial intelligence and other high-tech sectors, some analysts have said.“There is a great difference between those who focus only on surviving crises... and those who seize them as opportunities... and turn them into new beginnings,” Jaber said. 

The United Arab Emirates (UAE) owes it ​to its investment ‌partners to produce what global oil markets require without restrictions, ‌while co-operating with other ‌crude producers, its energy minister said ‌on Monday after the Gulf state left Opec. The UAE, one of Opec’s biggest producers, exited the group on May 1. “We owe it to partners investing in the UAE to produce what the world requires without restrictions with collaboration with all other producers,” Energy ​Minister Suhail al-Mazrouei said at an annual UAE industrial conference in Dubai. Mazrouei and ​state energy group ADNOC’s CEO said the UAE left Opec and Opec+ on good terms and the decision was not directed against anyone. “I am confident we will be working with so many nations, including members of Opec and Opec+... We left on good terms,” Mazrouei said at the “Make It In The Emirates” conference. Asked about Opec and Saudi Arabia’s lack of public response to the decision, Mazrouei said: “The group has been relatively calm about ‌the decision. Everyone realises ‌it is a sovereign decision and everyone realises that the UAE will be a responsible producer.” The UAE move was widely seen by energy analysts as weakening Opec’s clout over oil markets which could initiate a race to boost output leading to a sharp fall in crude prices. “We will gauge our engagements based on requirements of the market as well as what we need to produce ​for our local industries,” Mazrouei said. ADNOC CEO Sultan al-Jaber said the move to leave Opec served the UAE’s long-term strategic objectives, giving it greater ability to accelerate investment, expand and create value, while remaining a trusted and responsible partner in global energy markets.“The United Arab Emirates’ sovereign decision to reposition itself within the global energy landscape, and to exit Opec and Opec+, is not a decision directed against ‌anyone,” he told ​the conference. 

Opec+ is likely to agree another symbolic production increase for June, in the group’s first move since the surprise departure of the United Arab Emirates, three delegates said.Seven major nations led by Saudi Arabia and Russia will probably add 188,000 barrels a day to their output target during a video conference on Sunday, two of the delegates said, even though they’d be unable to implement it with the Strait of Hormuz blocked. The Opec+ delegates asked not to be identified as any deliberations are private.The group is continuing the process — at least on paper — of restoring output halted several years ago, which had been in progress before the outbreak of war. Opec+ is adjusting to the surprise loss of long-time member the UAE, which quit the organization on Tuesday after years of frustration over constraints on its output.The Iran war has effectively closed Hormuz, forcing exporters around the Arabian Gulf to shutter vast swathes of output. Raising quotas now could be useful later, when the conflict ends and countries revive production. Reuters first reported the potential output increase by Opec+ on Wednesday.Russian Deputy Prime Minister Alexander Novak said the UAE’s decision to leave Opec won’t lead to an imminent price war since the Iran conflict has throttled producers’ ability to unleash supplies, according to a report by Interfax. With Emirati officials already signaling plans to boost production, there’s concern that the country’s exit could eventually set the stage for a rush for market share. 

Global oil ‌glut predictions are seriously exaggerated ‌as demand growth ‍remains strong and global oil stocks are ⁠depleted, Amin Nasser, chief executive ⁠of Aramco, the world's biggest ‍oil producer, said on Thursday.Oil prices have traded above $60 per barrel for most of 2025 with analysts predicting a decline in 2026 as they expect global supply to exceed ‌demand by a big margin due to production growth from the US, ‍Opec+ and other ⁠producers.Demand growth ‌remains strong in emerging economies followed by China and the US with total demand reaching record levels last year and rising again this year, Nasser told reporters on the sidelines of the World Economic Forum in Davos."Oil glut predictions are seriously ​exaggerated... Oil stocks ‌are low across the world on a five-year ⁠average and barrels ‍offshore are mostly sanctioned barrels," he said.The world is also short of spare oil capacity or unused oil production that countries can activate ​in case of an emergency to avert price spikes."It (spare capacity) is at 2.5% and we need a minimum of 3%. If Opec+ further unwinds cuts, spare capacity will fall even further and we will need to ⁠watch this very carefully," said Nasser. 

A new mechanism adopted by OPEC+ to assess members' maximum output capacity will ultimately help to stabilise markets and reward those who invest in production, Saudi Energy Minister Prince Abdulaziz bin Salman has said.The OPEC+ group approved the mechanism to assess members' maximum production capacity to be used for setting baselines from 2027, against which their output targets are set, Opec said on Sunday.Prince Abdulaziz said the mechanism was "fair and transparent" for determining production levels."Now we have the most detailed, the most technical, transparent approach of how we can move forward in the future in managing the market and how to attend to production", he said."Sunday was probably one of the most successful days in my personal career and I am very grateful and thankful for the support of our friends in Russia," he said during the launch of a Saudi-Russian business forum in Riyadh.The meetings on Sunday of OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, also agreed to leave oil output levels unchanged for the first quarter of 2026.The evaluation of members' maximum production capacity is scheduled to take place between January and September 2026, according to sources following the meetings, allowing for 2027 output quotas to be set."It will also be a mechanism that will reward those who invest and those who believe there is growth, and would put us in the lead amongst the other producers," Prince Abdulaziz said.OPEC+ has been discussing the production capacity and quotas issue for years in talks that had proved difficult because some members such as the United Arab Emirates have increased capacity and want higher quotas.Other members such as African countries have seen declines in production capacity but are resisting quota cuts. Angola quit the group in 2024 over a disagreement about its production quotas. 

The global oil market faces an even bigger surplus next year of as much as 4.09mn barrels per day as Opec+ producers and rivals lift output and demand growth slows, the International Energy Agency said on Thursday.The outlook from the IEA, which advises industrialised countries, is the latest warning that the oil market is heading for oversupply. A surplus of 4.09mn bpd would be equal to almost 4% of world demand, and is much larger than other analysts’ predictions.“Global oil market balances are looking increasingly lopsided, as world oil supply is forging ahead while oil demand growth remains modest by historical standards,” the IEA said in its monthly report.Opec+, or the Organisation of the Petroleum Exporting Countries plus Russia and other allies, has been boosting output since April. Other producers, such as the US and Brazil, are also increasing supply, adding to glut fears and weighing on prices.Oil prices edged higher to around $63 a barrel after the IEA report to recoup some of the 2% drop on Wednesday after Opec shifted its 2026 outlook to a small surplus, having earlier seen a sizeable deficit.Global oil supply will grow by around 3.1mn bpd in 2025, and 2.5mn bpd next year, each up by around 100,000 bpd on the month, the IEA said.Supply is rising faster than demand in the IEA’s view even after upward revisions on Thursday. The agency now expects oil demand to rise by 770,000 bpd next year, up 70,000 bpd from last month, citing increased needs in petrochemical plants.The short-term outlook in the IEA’s monthly report contrasts with the agency’s annual outlook on Wednesday, which sees global oil and gas demand potentially rising until 2050.Opec sees a surplus of just 20,000 bpd next year according to Reuters calculations based on its own monthly oil market report on Wednesday, although this marks a further retreat from its forecast of a sizeable deficit.Global oil output was 6.2mn bpd higher in October than at the start of this year, divided evenly between Opec+ and non-Opec producers, the IEA said. Top Opec producer Saudi Arabia contributed 1.5mn bpd of the increase, while Russia added just 120,000 bpd amid sanctions and Ukrainian attacks.Russian oil exports have continued largely unabated despite new US sanctions on Russian firms Rosneft and Lukoil, which still may have the most far-reaching impact yet on global oil markets, the IEA said.The IEA added that new entities have already started handling Russian exports as it adapts to sanctions. In October, companies MorExport, RusExport and NNK, which have only been active since May, lifted around 1mn bpd of Russian crude and fuels, it said.The Paris-based IEA also drew attention to a sharp rise in global oil inventories, which rose to their highest since July 2021 in September at just under 8bn barrels.The increase was driven by a sharp increase in waterborne oil in storage, which rose by 80mn barrels in September.Preliminary October data shows further rises for global stocks, again driven by increasing waterborne barrels, the agency added.

Oil prices rose in early Asian trading on Monday after OPEC+ announced a pause in output hikes during the first quarter of 2026, reflecting a cautious stance amid ongoing demand uncertainty. Brent Crude gained 0.47% to trade at $65.24 per barrel, after closing $0.07 higher on Friday. West Texas Intermediate (WTI) rose 0.45% to $61.43 per barrel. During an online meeting on Sunday, eight OPEC+ member states agreed to raise production by 137,000 barrels per day in December 2025, consistent with the increases implemented in October and November. The group subsequently announced a pause on further output hikes for January, February, and March 2026, citing "seasonality" and typically weaker demand during the first quarter. Both Brent and WTI fell by more than 2% in October, marking their third consecutive monthly decline and hitting their lowest levels in five months on October 20, amid concerns about oversupply and economic uncertainty linked to potential US tariff measures.

Oil prices declined on Tuesday, extending losses from the previous two sessions, due to OPEC's plans to increase output, which outweighed optimism about a potential trade deal between the United States and China.Brent Crude futures dropped by four cents to $65.58 a barrel, while US West Texas Intermediate (WTI) crude futures fell by nine cents to $61.22 a barrel.Russia's Lukoil, the country's second-largest oil producer, announced its plans to sell its international assets following US sanctions.The United States announced last week a round of sanctions on Russia related to the oil sector.US Treasury Secretary Scott Bessent said in a statement that sanctions were imposed on Russia's two largest oil companies, attributing the move to Moscow's refusal to end the war in Ukraine. He added that the sanctions on Rosneft and Lukoil were due to their financing of Russia's war machine.US President Donald Trump seeks to bring an end to the conflict that began when Moscow launched its military operation in Ukraine on Feb. 24, 2022.

Oil prices rose nearly 1% on Wednesday as investors shrugged off concerns about oversupply after digesting a decision earlier by OPEC+ to limit production increases next month. Brent Crude futures gained 63 cents, or 0.96%, to $66.08 per barrel, while US West Texas Intermediate (WTI) crude rose 66 cents, or 1.07%, to $62.39. The benchmarks had settled broadly flat in the previous session as traders weighed signs of a potential supply glut against the smaller-than-expected output increase announced by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

Oil prices climbed around 1% at Monday's close after OPEC+ announced a smaller-than-expected production increase for November, easing some supply concerns. However, weak demand outlooks may limit further gains in the near term. Brent Crude futures rose by 94 cents, or 1.46%, to settle at $65.47 per barrel, while US West Texas Intermediate (WTI) crude gained 81 cents, or 1.33%, to $61.69. OPEC+ said on Monday it would raise oil output by 137,000 barrels per day in November—the same increase that applied in October—amid ongoing concerns about oversupply.

Oil prices slipped nearly 1% on Monday after Iraq’s Kurdistan region resumed crude oil exports, and as OPEC+ plans another oil output hike in November. Brent crude futures fell 63 cents, or 0.90%, to $69.50 a barrel, after settling at their highest level since July 31 on Friday. U.S. West Texas Intermediate (WTI) crude was trading at $65.07 a barrel, down 65 cents, or 0.99%, giving back most of Friday’s gains. Both Brent and WTI rose more than 4% last week, marking their biggest weekly gains since June.

Oil prices climbed in early trade on Monday, trimming some of last week's losses, after OPEC+ agreed to slow the pace of output increases from October amid expectations of weaker global demand. Brent Crude gained 34 cents, or 0.5%, to $65.84 a barrel, while US West Texas Intermediate (WTI) crude rose 30 cents, or 0.5%, to $62.17 a barrel. Both benchmarks fell more than 2% on Friday as a weak US jobs report dimmed the outlook for energy demand. They lost more than 3% last week. Under the new OPEC+ decision, eight member countries will lift production by 137,000 barrels per day (bpd) starting in October, far below the monthly increases of about 555,000 bpd for September and August, and 411,000 bpd in July and June.