(Bloomberg) -- OPEC and its allies are increasing oil production but can’t solve all the sector’s issues alone, the United Arab Emirates’ energy minister said.
The industry needs investment, through the involvement of international oil companies, in order to provide adequate supplies, Suhail Al-Mazrouei said, according to the UAE’s state-run WAM news agency. Failure to provide sufficient capital may lead to future price hikes, he warned.
Crude prices rallied to a seven-year high above $89 a barrel in London on Wednesday as global demand recovers from the pandemic and supplies are curtailed by a host of disruptions. It’s an increasing challenge for consumers as they grapple with inflation, from fuels to food prices.
A large contributor to the rally has been the failure of many OPEC+ nations to restore output halted during the pandemic, as they contend with depressed spending of their own. The group added only 60% of its mandated output boost last month, according to the International Energy Agency. But diminished spending has also been an issue for the global industry, as a result of the 2020 price collapse and as investors divert cash away from fossil fuels.
The UAE remains committed to increasing its output as part of the OPEC+ accord, Mazrouei said.
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