The UAE is optimistic about recovery in oil demand in 2021, but says it would not be immediately.
Rollout of coronavirus vaccines and improvement in ties between the United States and China are likely to improve demand for oil, Energy Minister Suhail Al-Mazrouei told Sky News Arabia. “Recovery will be gradual, and won’t happen in a quarter or two,” he said.
The oil was ready for its first weekly loss since October, following the discovery of an alternative to the potential rapid expansion of the Covid-19 in the UK, which increased the risk of further energy demand-sapping lockdowns.
The UAE is not concerned about the new version of the virus. “I didn’t see any danger from these strains,” he said. “The world health sector can find a solution to this virus.”
The alliance of OPEC + oil producers has successfully mitigated the impact of declining demand, Al-Mazrouei said, adding that the UAE expects more producers to join in the future.