DOHA (Pakistan Point News / Sputnik - 24th December, 2020) UAE Minister of Energy and Infrastructure Suhail Al Mazrouei said on Thursday that he expects the gradual restoration of the oil demand in 2021 following the unprecedented oil crisis caused by the worldwide COVID-19 pandemic.
"The year 2020 was an exceptional one, as the oil industry was greatly affected. 2021 will be the year of recovery, but [the process] will be gradual," Al Mazrouei told Sky news Arabia in an interview, noting that the recovery might take more than two quarters.
Abu Dhabi sees positive signs in the petroleum sector, as the implementation of the OPEC+ oil output cuts deal is underway, the energy minister added, noting that a small change in the agreement may have a positive impact on the global economy.
According to Al Mazrouei, the current year "taught the oil-producing countries a lot of lessons," including the need for joint activities during crises.
"One group of states, the OPEC members, for example, cannot balance the [oil] market during the crisis, with prices falling to such a level, on its own. We want cooperation between these countries to increase and other manufactures to join it," the minister added.
Al Mazrouei also positively assesses prospects of the trade partnership between the United States and China.
In April, oil prices dropped amid the decreasing demand caused by the pandemic-induced lockdowns and the failure of major oil producers to agree on extending the oil cuts deal in March. The negative trend forced the organization's members to agree on a new agreement aimed to cut oil production and stabilize the market.
The OPEC+ deal came into force in May, resulting in reduction of oil production by 9.7 million barrels per day for three months. Starting from August, the alliance agreed to continue cutting output more gradually - by 7.7 million barrels per day - until the end of the year, and later - by 5.8 million until the end of April 2022.
