UAE projects a gradual oil demand recovery in 2021

The United Arab Emirates is optimistic about a recovery in oil demand in 2021 but says it won’t be immediate.

Energy Minister Suhail Al-Mazrouei told Sky News Arabia, Report states.

The rollout of coronavirus vaccines and improvement in ties between the United States and China are likely to improve oil demand, . “Recovery will be gradual and won’t happen in a quarter or two,” he said.

Oil was poised for its first weekly loss since October as the discovery of a potentially faster-spreading variant of Covid-19 in the UK raised the risk of more energy demand-sapping lockdowns.

The UAE isn’t concerned about new mutations of the virus. “I haven’t seen any danger from these strains,” he said. “The global health sector can find a solution to this virus.”

The OPEC+ alliance of oil producers has successfully mitigated the impact of reduced demand, said Al-Mazrouei, and the UAE hopes more producers would join in the future.