"As the world's largest oil producer, we have no intention of leaving OPEC because we believe it quite effectively mitigates oil market risks during crises and allows us to maintain our investment strategies, the industry’s development prospects, and ongoing cooperation between countries,” Novak stated.
"Therefore, we will continue to work together.”
He said he did not expect an oil price war to emerge following the UAE’s exit given a global oil deficit.
“What kind of price war can there be in the current situation, when there is a shortage on the market? he asked rhetorically.
“So we're seeing that the deep crisis in the sector is continuing. A huge amount of oil is currently not reaching the market and demand significantly exceeds supply.”
“We are now seeing an imbalance due to serious logistical disruptions and the situation in the Middle East,” Novak continued.
“All of this negatively impacts the market."
On April 28, the UAE announced its decision to exit OPEC and OPEC+.
On April 5, OPEC+ countries decided for the second time in a row to increase oil production quotas amid the unstable situation caused by the war against Iran and its blockade of the Hormuz Strait.
The Organization of Petroleum Exporting Countries (OPEC) was founded in 1960. According to OPEC’s website, the organization included 12 countries: the UAE, Algeria, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, and Venezuela.
OPEC+ is a larger group consisting of OPEC members and other oil-producing countries, such as Russia, Kazakhstan, Mexico, Azerbaijan, Oman, etc.