The Organization of the Petroleum Exporting Countries (OPEC) and other non-OPEC major producers, an alliance known as OPEC+, are committed to achieving oil market balance, according to the UAE Minister of Energy and Industry Suhail Al-Mazrouei, Reuters reported.
More output cuts seemingly remain a possibility with the aim of achieving market balance, not only in production levels but also in crude inventories, according to Al-Mazrouei, as oil producers want to avoid a supply glut.
The Emirati minister believes that geopolitical risks and trade tensions are currently weighing on the global oil markets more than the levels of supply and demand.
OPEC+ recently decided to extend the production cut agreement until the end of March 2020. The decision came shortly after Saudi Arabia and Russia agreed to extend the output cut deal by another six to nine months during a meeting between Saudi Crown Prince Mohamed Bin Salman and Russian President Vladimir Putin.