Oil prices are “nowhere near” their peak as an impending rebound in Chinese demand threatens to strain a global market already pinched by tight supplies, said key OPEC member the United Arab Emirates.
The comments serve as an acknowledgment that last week’s decision by the OPEC+ coalition to bolster output will give consumers little respite from the soaring cost of energy this summer. The Organization of Petroleum Exporting Countries is struggling to restore production as planned, with spare capacity confined to just a few members, the UAE minister conceded.
“With the pace of consumption we have, we are nowhere near the peak because China is not back yet,” Energy Minister Suhail Al-Mazrouei said at a conference on Wednesday in Jordan. “China will come with more consumption.”
Al-Mazrouei warned that without more investment across the globe, OPEC+ can’t guarantee sufficient oil supplies as demand fully recovers from the coronavirus pandemic. Prices can reach “unseen” levels if Russian oil and gas is completely taken off the market, he said.
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