The world is in unchartered territory and right now, no one can predict exactly what the global economic recovery will look like. But there are signs that oil markets have tightened in recent weeks and will rebalance over time, said Dr Sultan Ahmed Al Jaber, the UAE Minister of State and Group CEO of Abu Dhabi National Oil Company.
He was speaking on Adnoc’s "Virtual Majlis" with Helima Croft, the managing director and global head of commodity strategy at RBC Capital Markets.
Highlighting the reasons for cautious optimism in oil markets, Dr Al Jaber said: "When it comes to oil, there are signs that the market has tightened in recent weeks. The Opec-plus agreement, voluntary cuts outside Opec-plus and production shut-ins are working together to rebalance the market. This will take time"
"As economies begin to open up, demand will follow, but the path to the next normal is not a straight line," stated Dr Al Jaber.
The top official continued by highlighting how Adnoc is reaping the benefits of its transformation over the past four years as it navigates this period of uncertainty.
"We are seeing the benefits of the steps we have taken on over the last four years. In fact, this crisis has highlighted just how forward-thinking our leadership’s guidance has been in directing this transformation. As a result, Adnoc is now far stronger and better positioned to manage the current market dynamics," he stated.
Dr Al Jaber said: "Through Adnoc's transformation, we have focused on what we can control and that is our costs. We’ve been laser-focused on being one of the lowest-cost producers in the world. And this has given us the flexibility and the resilience that we need at times like these."
"In this environment, we are continuing to work even harder to preserve our resources, and maximize our profitability," stated Dr Al Jaber.
The top official stressed that Adnoc continues to make the health and safety of its employees its top priority as it proactively responds to the risks presented by the Covid-19 situation.
This approach closely aligns with the wise measures put in place by the UAE leadership to ensure the health and safety of everyone living in the country while driving health diplomacy around the world, he added.