RIYADH: Rising geopolitical tensions are driving oil prices higher, the UAE energy minister claimed on Monday as he played down the likelihood of Russia invading Ukraine.
“I don't think we need to escalate more than what is said...I am on the side of the camp that doesn't see it happening,” said Suhail Al-Mazrouei on the sidelines of an industry event in Cairo.
Although he is worried there has not been enough investments in oil and gas, Al-Mazrouei said the UAE’s infrastructure is well protected against attacks, as it has diversified electricity infrastructure and spare capacity.
“Some countries have spare capacity, there is agreement of gradual increase of production to go out of production cut deal and we have a plan,” he said.
Brent crude prices have hit a seven-year high, reaching over $96 a barrel on Monday, as fears over disruption on exports are mounting due to the possible Russian invasion of Ukraine.
UAE will keep increasing production by 400,000 barrels per day, noting that nothing will be done outside of an agreement by the Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+, as it needs to be a collective decision.
The intergovernmental organization has done a lot to stabilize the market so far, the energy minister said.
