SINGAPORE: The UAE Energy Minister Suhail Al-Mazrouei said on Friday he hopes that global supplies will start tightening in the second half of the year when demand picks up.
“We have seen healthy demand and a flattening of rig counts in the United States,” Al-Mazrouei told reporters.
“This is the beginning of the third quarter and demand picks up in the third quarter and I hope the agreement will have a significant impact in the third and fourth quarter.”
Brent crude oil prices remain just under the key $50 per barrel mark on concerns about high supplies from the Organization of the Petroleum Exporting Countries (OPEC) despite a pledge to cut output in a bid to tighten the market.
OPEC, together with some non-members like Russia, has extended a deal to cut production by 1.8 million barrels per day (bpd) to March 2018.
However, OPEC’s compliance slumped to 78 percent in June as higher-than-allowed output from Algeria, Ecuador, Gabon, Iraq, the UAE and Venezuela offset strong compliance from Saudi Arabia, Kuwait, Qatar and Angola, the International Energy Agency said last week.
“The UAE is committed to its cut,” Al-Mazrouei said.
“We have seen some increase in production in some of the countries that were not part of the agreement because of their special stance.”
Oil traders are looking ahead to Monday’s meeting between OPEC and non-OPEC members to see if it will address rising production from Nigeria and Libya, which have been exempted from the cuts.
OPEC’s Joint Ministerial Committee monitors compliance with the supply pact and will meet in St. Petersburg, Russia.
OPEC’s supply cuts have also been countered by rising US production, which has increased almost 12 percent since mid-2016 to 9.4 million bpd.
The number of rigs drilling for new US oil supply has also climbed since last year though the pace has slowed in recent weeks.
UAE energy minister hopes global oil supplies will begin tightening in second half
UAE energy minister hopes global oil supplies will begin tightening in second half
Saudi Arabia’s FMF concludes with over $26.6bn in agreements
RIYADH: Saudi Arabia said it secured more than SR100 billion ($26.6 billion) in agreements and memorandums of understanding at the fifth edition of the Future Minerals Forum, underscoring the Kingdom’s push to position mining as a key pillar of its economic diversification strategy.
The forum, held in Riyadh under the patronage of King Salman bin Abdulaziz Al Saud, drew representatives from around 100 countries and attracted about 21,500 participants, according to the Ministry of Industry and Mineral Resources.
The government has identified mining as a priority sector as it seeks to reduce reliance on oil and strengthen global supply chains for critical minerals.
The agreements signed during the forum span the full mining value chain, including exploration, extraction, and mineral processing, as well as manufacturing, research and development, innovation, and sustainability.
The ministry said the breadth of the deals highlights efforts to accelerate sector development while attracting long-term domestic and foreign investment.
Participants included ministers, senior government officials, executives from major global mining companies, and investors, as well as academics and technical experts. More than 450 speakers took part in ministerial roundtables, panel discussions and technical sessions.
An international exhibition formed a key part of the event, featuring 274 exhibitors from 13 countries, including Australia, the US, and the UK, as well as France, Germany, and several emerging mining markets.
The exhibition was organized across four main zones covering exploration and mining, processing and manufacturing, advanced technologies and innovation, and investment and partnerships.
Forum discussions focused on strengthening cross-border cooperation across mineral supply chains, accelerating exploration activity, and improving access to financing, as well as promoting sustainable and responsible mining practices.
Sessions also examined the growing role of digital tools, automation and artificial intelligence in enhancing operational efficiency and decision-making in the sector.
The ministry said the scale of agreements announced at the forum provides a foundation for sustained growth and supports the Kingdom’s long-term objective of becoming a global hub for mining and mineral processing, at a time of rising international demand for critical and strategic minerals.
The ministry also highlighted the rapid evolution of the Future Minerals Forum over its five editions, describing it as a platform that has transitioned from a regional gathering into a global convening point for policymakers and industry leaders.
