- UAE calls for extraordinary measures to rebalance oil markets.
- ADNOC targets 5 million bpd capacity by 2027.
- Minister highlights regulatory stability and investment needs.
Market Stability at Risk
UAE Energy Minister Suhail Al Mazrouei said the global oil market requires “extraordinary measures” to restore balance, warning that underinvestment could lead to supply shortages. Speaking at a conference in Abu Dhabi, he stressed the need for coordinated action among producers to prevent volatility.
“We are looking at a market that needs extraordinary measures from all of us to ensure stability,” Mazrouei said, according to people familiar with the matter. He did not specify which measures might be taken, but hinted at potential production adjustments or strategic reserve releases.
ADNOC, the UAE’s state oil company, is pushing ahead with plans to boost crude output capacity to 5 million barrels per day by 2027, up from around 4.65 million bpd currently. The expansion underscores the UAE’s long-term bet on oil demand growth, even as global energy transition pressures mount.
Investment Gap Worries
Mazrouei echoed concerns from other OPEC+ members that insufficient investment in new supply could leave the market tight as demand recovers. “If we don’t invest enough today, we could face a supply crunch tomorrow,” he said.
The minister’s comments come amid ongoing tensions within OPEC+ over production quotas. While the UAE has complied with agreed cuts, it has pushed for higher baseline production levels to reflect its growing capacity.
Efforts to reach ADNOC for additional comment were unsuccessful.
Correction: An earlier version of this article misstated the timeline for ADNOC's capacity target. The correct date is 2027.