Item 1 of 2 UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO Sultan Ahmed Al-Jaber speaks during the opening ceremony of the annual energy industry event Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in Abu Dhabi, United Arab Emirates, November 3, 2025. REUTERS/Amr Alfiky
[1/2]UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO Sultan Ahmed Al-Jaber speaks during the opening ceremony of the annual energy industry event Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in Abu Dhabi, United Arab Emirates, November… Purchase Licensing Rights, opens new tab Read more
- OPEC+ pauses output increases amid supply glut fears
- UAE emphasizes need for energy investment and balance
- Volatility in energy market seen as constant by ADNOC CEO
ABU DHABI, Nov 3 (Reuters) – More oil demand is expected going into 2026, the United Arab Emirates’ energy minister said on Monday at the ADIPEC energy conference in Abu Dhabi, after OPEC+ decided to pause output increases in the first quarter of next year.
When asked about the possibility of an oil glut in 2026, Suhail al-Mazrouei said: “I think all of what we are seeing is more demand.”
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The UAE is one of eight OPEC+ countries that agreed to increase December output targets, though it halted the increases in the first quarter as it moderates plans to regain market share on fears of a supply glut.
New Western sanctions on OPEC+ member Russia are adding to the challenges, as Moscow may struggle to further raise output after the U.S. and Britain imposed fresh measures on top producers Rosneft and Lukoil.
Mazrouei said OPEC+ is trying to achieve balance, but investments are needed because artificial intelligence and data centres require more energy.
“There is a requirement for more energy … and we need to make sure the environment for investment is allowed to do that,” he said.
“If we’re not achieving a balance between the price and what you would require, we will not have (a sufficient flow of investment) to do it.”
‘VOLATILITY IS THE NORM’
UAE oil firm ADNOC’s chief executive said volatility became a constant due to geopolitics and near-term uncertainty was real. But long-term demand remained strong, he said, adding that oil demand would stay above 100 million barrels a day beyond 2040.
“While we may face headwinds in the months ahead, the long-term outlook shows demand growth for every form of energy across every market,” Sultan Al Jaber said.
Al Jaber said that cost discipline needed to be balanced with capital investment.
Electricity demand will keep surging through 2040 as the power required by data centres continues to grow, but a shortage of gas turbines is turning a supply crunch into a “choke point” that is sending electricity prices higher, Al Jaber said.
More than $4 trillion in capital investment is needed annually to cover grids, data centres and all sources of energy supply, he added.
The capital is available but needs to be derisked, Jaber added, saying the right structures need to be in place to ensure the flows are going where they are needed.
He added that “dormant capital” tied up in existing energy infrastructure needs to be freed up.
XRG, ADNOC’s international investment arm, continues to look for opportunities across the gas value chain.
Reporting by Maha El Dahan, Yousef Saba, and Jana Choukeir; Writing by Nayera Abdallah, Editing by Tom Hogue and Thomas Derpinghaus
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