“OPEC and non-OPEC (countries) came together, they sacrificed some of their production to try and fix the imbalance in the market. So the objective of OPEC was, I would say, a noble goal to rescue the market (from) a long over-supply,” he said.
Oil prices rose in March rose above $70 per barrel over fears that tensions in the Middle East could escalate. On Monday, oil prices were mixed during Asian trading hours: Brent crude oil futures trading 0.05 percent higher while the U.S. West Texas Intermediate crude futures were down by 0.03 percent.
Al Mazrouei said oil markets are in a “much, much better position” now thanks to the agreement among major oil producers, including OPEC countries and Russia, to limit production until the end of 2018.
“The problem is if we keep the market over-supply or if we drown the market again … We will have a way bigger problem down the road,” Al Mazrouei said.
“It’s a bigger picture than just looking at the price today and yesterday and [saying] that the price is high,” he added.