Speaking in an online company forum, the CEO of Abu Dhabi National Oil Co. (ADNOC) observed there are signs that oil market conditions are improving.
“When it comes to oil, there are signs that the market has tightened in recent weeks,” ADNOC Group CEO and UAE Minister of State Sultan Ahmed Al Jaber said Thursday during an interview on the company’s “Virtual Majlis” program. “The OPEC-plus agreement, voluntary cuts outside OPEC-plus-plus, and production shut-ins are working together to start 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.”
Al Jaber also remarked that ADNOC is well-positioned to weather the considerable uncertainty that exists within the outlook for the global economic recovery. Earlier this week, Rigzone presented IHS Markit’s perspective of how an oil market recovery might manifest itself into the second half of 2021.
“We are seeing the benefits of the steps we have taken on over the last four years,” Al Jaber noted. “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.”
The chief executive pointed out that ADNOC has emphasized controlling costs – something that is paying off now.
“We’ve been laser-focused on being one of the lowest-cost producers in the world,” he explained. “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.”
Al Jaber presents his insights in a conversation with RBC Capital Markets Managing Director and Global Head of Commodity Strategy Helima Croft on an ADNOC YouTube video.
To contact the author, email mveazey@rigzone.com.
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