Abu Dhabi hosted a major oil summit Monday, shortly after OPEC+ announced it would halt planned production increases for the first quarter of 2026, citing concerns over oversupply in the market.
The decision follows recent oil sanctions imposed by the United States and the United Kingdom on Russia over the Ukraine war. Targets included Rosneft and Lukoil, whose logo prominently appeared at the Abu Dhabi International Petroleum Exhibition and Conference, a key sponsor of the event.
Despite the war, the UAE has maintained strong ties with Russia and has acted as an intermediary between Kyiv and Moscow in prisoner exchange negotiations.
OPEC+ had met Sunday and agreed to boost production by 137,000 barrels per day starting December but said adjustments planned for January through March would be paused “due to seasonality.” The group includes core OPEC members and allied nations, notably Russia.
Benchmark Brent crude traded around $65 per barrel Monday, down from a post-COVID peak of about $115 after Russia’s 2022 invasion of Ukraine. Prices recently slipped to $60 amid concerns of excessive supply.
“Yes, OPEC+ is blinking, but it’s a calculated move,” said Jorge León, head of geopolitical analysis at Rystad Energy. “Sanctions on Russian producers have added uncertainty to supply forecasts. Pausing production protects prices, signals unity, and buys time to gauge the impact of sanctions on Russian barrels.”
OPEC+ extends output cuts to support oil prices
Meanwhile, the U.S. administration continues to advocate for increased domestic production. Interior Secretary Doug Burgum, former governor of North Dakota and chair of Trump’s National Energy Dominance Council, attended the summit. The average U.S. gasoline price stood at $3.03 per gallon Monday.
The ADIPEC oil conference follows last year’s COP28 climate talks in the UAE, where nearly 200 countries pledged to reduce reliance on fossil fuels. Nevertheless, the UAE plans to raise its oil production capacity to five million barrels per day while expanding clean energy initiatives domestically.
Source: AP