UAE Rejects Oil Oversupply Concerns Amid OPEC+ Production Pause

UAE Energy Minister Suhail Al Mazrouei dismissed fears of an oil oversupply during the Adipec conference in Abu Dhabi, asserting that global demand remains robust. "I'm not going to talk about an oversupply scenario. I can't see that," he said. The sentiment echoes Saudi Aramco's recent stance, countering the International Energy Agency's projection of a record surplus in 2025 as production outpaces slowing demand growth.

OPEC+ announced a halt to output increases for Q1 2026 after a modest hike next month, citing seasonal demand weakness and geopolitical uncertainties tied to US sanctions on Russian producers. Brent crude edged 0.7% higher post-announcement, though prices remain down 13% YTD with Goldman Sachs and JPMorgan forecasting further declines.

Long-term energy investments must continue across oil, gas and renewables to meet future demand, Mazrouei emphasized. The remarks come as hedge funds and institutional players increasingly treat commodities as inflation hedges – a narrative paralleled in crypto markets where Bitcoin and ethereum serve as macro plays.