Abu Dhabi: The UAE Energy Minister on Wednesday said current prices are not sustainable and will positively change in the future. Suhail Al Mazroui said it is a matter of time before prices bounce back.
“It’s a matter of supply and demand. We are optimistic and [the price] needs a bit of time,” Al Mazroui told reporters on the sidelines of World Future Energy Summit in Abu Dhabi on Wednesday.
Oil prices are currently trading at multi-year lows. From more than $115 per barrel in June of 2015, prices plunged to less than $30 per barrel with International Energy Agency predicting oil markets could drown in the glut in 2016.
The entry of Iranian oil will not help in the recovery of oil prices, the Energy Minister had said on Monday. He said the situation is going to get worse if new supply comes into the market.
Iran said it is getting ready to pump up to 500,000 barrels per day oil into the world markets, following the removal of economic sanctions last week.
Speaking on energy mix and renewables, he said the UAE will have a right balance with emphasis on both the sources of energy. “There is an evolution of greener sources of energy and that will continue,” he said.
“The UAE is playing a leading role in setting the pace for the rest to adopt balanced, environmentally friendly sources of energy. It is the target of every organisation and stake holder in the energy sector.”
He said financing of mega projects in renewable sector is still an issue but not as big as it was last year.
“All these things are helping. We need to see technology evolving to achieve a cheaper way of storing solar energy. If we can achieve that the Arabian Peninsula can export electricity even to Europe because we have the sun and the land.”
The Energy Minister spoke after releasing the UAE State of Energy report 2016 at the summit.
