UAE Energy Minister Suhail Mohammad Al Mazroui Image Credit: Gulf News Archives

Abu Dhabi: Energy Minister Suhail Al Mazroui said the oil market is on the “right track” and that the market will quickly return to balance in the first quarter of this year.

“January’s commitment levels to [an] oil cut were positive and we’re on the right track to achieve [an] oil market balance. We expect balance in the first quarter of this year,” Al Mazroui said on the sidelines of a Federal National Council session yesterday.

The minister reiterated that the UAE was still 100 per cent committed to an oil production cut.

“The UAE currently produces 3.072 million bpd [barrels per day],” he said.

Oil demand growth remains healthy with forecasts in the 1.3-1.5 million bpd range, while supply is starting to reflect the impact of production adjustments.

An estimated 1.2 million bpd cut came into effect only in January last year after the Organisation of Petroleum Exporting Countries (Opec) and its allies reached a deal to cut oil production and boost the market.

The UAE energy minister said that global economic growth and prosperity can be predicated on the presence of a healthy and vibrant oil industry, operating in an environment which attracts the necessary investment that will ensure that an equal amount of affordable and accessible oil supply is made available in a reliable and timely manner.