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08 December 2023

Oil glut to ease even if Iran boosts output: UAE minister

By Reuters

A global oil glut will decrease even if Iran manages to boost its crude production by 500,000 barrels per day (bpd) due to the expected growth in demand of at least 1.3 million bpd, the UAE energy minister said on Wednesday.

"The current oil market fluctuations is not linked to the supply and demand, it's rather driven by speculations on the effect of new oil from Iran," Suhail bin Mohammed Al Mazroui wrote on his Twitter feed.

"It's difficult to see from where the new oil supply is coming from in 2016 to fill the expected demand growth of 1.3 million bpd. Without certainty of the sources of supply increase, the oversupply glut will start decreasing even if Iran manages to produce 500,000 bpd," he wrote.

"We need not underestimate the effect of current oil prices on reducing non-Opec production levels beyond what we expected," he added.