The OPEC + has agreed on unprecedented cuts in oil production and according to the energy minister of the United Arab Emirates, Suhail Mohammed Faraj Al Mazroui, this may restore the prices.
The coronavirus crisis cut demand dramatically in March and April sinking crude oil prices. Brent international crude prices never went negative but West Texas Intermediate (WTI) crude benchmark plummeted to minus $40.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, agreed on bringing down production in order to balance global oil markets. It could take a year or two for that as the cuts exhaust the excess from the market, said Mazrouei during the call hosted by the Atlantic Council.
Mazrouei said:
We have seen very good signs of demand picking up. We have seen numbers of driving vehicles are picking up.
The oil prices will still largely depend on whether there is a second wave of the coronavirus pandemic and economies are forces to shut down again, he added.