The UAE Minister of State, CEO of Abu Dhabi Petroleum Company (ADNOC) and its group of companies; Sultan Al-Jaber, revealed on Friday that oil markets are going through a period of instability. He also noted that during the past weeks; there were signs of improvement and markets could restore their balance over time.
Jaber said the world is currently going through an unprecedented stage that does not allow accurate expectations about the global economic recovery. However, there are indications of cautious optimism in energy markets.
Cuts to Rebalance Situation
“The OPEC+ agreement; voluntary cuts outside OPEC+; and production shut-ins are working together to start to rebalance the market,” he noted while speaking during ADNOC’s Virtual council.
Dr. Al Jaber continued by highlighting how ADNOC is reaping the benefits of its transformation over the past four years as it navigates this period of uncertainty.
“Through our 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,” Dr. Al Jaber said, WAM reported.
He also noted that the crisis has reflected “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 stressed.