OPEC+ energy ministers are meeting today, Wednesday, with oil industry executives at the 8th OPEC International Seminar titled, “Towards a Sustainable and Inclusive Energy Transition.” The conference aims to discuss global energy security in light of government plans for energy transition and the investment challenges facing the sector.
This conference comes at a time when the global energy sector is facing several challenges, notably the sustainability of supplies amidst some countries’ plans to phase out fossil fuels in the near future. This poses a threat to the supply, which comes against the backdrop of a looming global economic slowdown.
The OPEC Seminar comes just one day after Saudi Arabia extended its voluntary oil production cut of one million barrels per day for the month of August. This move is part of precautionary measures aimed at reducing global oil price volatility, while supporting the efforts of the OPEC+ alliance in stabilizing and regulating international markets. These discussions take place against the backdrop of gloomy global economic data and the Federal Reserve’s anticipation of continued interest rate hikes, which could cast a shadow over economic strength and subsequently impact fuel demand.
Read more: Economic headwinds outweigh supply cuts, depress oil prices
Moscow has also announced its intention to reduce its oil exports by approximately 500,000 barrels per day in August, according to Deputy Prime Minister Alexander Novak.
Suhail Al Mazrouei, Minister of Energy and Infrastructure in the UAE, emphasized the, “central role” of the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance in serving the interests of producers and consumers, while promoting sustainable investment in the energy sector.
According to the Emirates News Agency, Al Mazrouei stated that, “collective work is always a source of greater positive results and a central pillar for cooperation and unity.”
He further highlighted that the primary objective of OPEC is to ensure market stability and achieve a balance between demand and supply to support global economic growth.
On Monday, Al Mazrouei told the Emirates News Agency that OPEC+ always seeks to achieve balance in the market between supply and demand to avoid any accumulation in global oil inventories that could lead to instability and speculative activities in global markets.
He continued to report that the technical team within OPEC continuously monitors changes in global oil markets, and provides recommendations to the ministerial committee to make decisions that enhance market stability and sustainable growth.
Al Mazrouei added that the 8th OPEC International Seminar, titled, “Towards a Sustainable and Comprehensive Energy Transition”, serves as an important global platform for envisioning and shaping the future of the global energy sector. It involves the participation of producing and consuming countries, energy sector leaders, and experts from around the world, contributing to a fair and realistic transition towards a more sustainable future in the energy sector. This includes ensuring reliable energy supplies through the utilization of the latest technologies and advancements in this vital sector.
Meanwhile, Secretary General of OPEC, HE Mohammad Sanusi Barkindo, clarified on the organization’s website that the upcoming OPEC Seminar, with its significant participants, along with high-level discussions, will focus on, “key issues affecting the energy sector, particularly during this critical period for the global industry.”
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