Oil & Gas Qatar warns low oil price may hurt AI power needs By Pramod Kumar May 22, 2025, 7:45 AM Alamy via Reuters Qatar's energy minister cautions that persistently low crude prices jeopardise global energy security and the power needs of emerging technologies including AI Detrimental effect at $60 Brent crude currently $66 $70 – $80 sustains production Crude prices falling below $60 a barrel would have a detrimental effect on global oil sector investment, and on fast-growing, energy intensive industries such as data centres and artificial intelligence, Qatar’s energy minister has said. “If oil prices decline below $60, there is definitely going to be a decline in investments,” Saad Al-Kaabi said at an investment conference in the Qatari capital, Doha. Investment cuts would then mean potentially less fuel to generate electrical power, the minister said on behalf of the Opec producer. “The US alone wants to add 100 gigawatts of power to support artificial intelligence and additional industry they want to bring back into the country,” Al-Kaabi said. “And if you don’t have additional investments, it is going to damage that ambition.” A price of $70 to $80 per barrel was needed to sustain current oil production and invest in additional capacity, the minister said. Qatar takes centre stage on Trump’s Middle East mission Qatar to build $4bn power and water facility Qatar opts for AI to boost public services Many oil producing companies could be forced out of the market if crude prices remain below $70 a barrel for a long time, the minister said earlier this month. Though the price of oil has recovered a little in May after plunging the month before, it is still trading at four-year low. The Brent crude benchmark is up almost 1 percent today at just below $66 per barrel. Earlier this month, Goldman Sachs lowered its oil price forecast after Opec and its allies agreed to accelerate oil output increases. The US investment bank expects Brent crude to average $60 per barrel for the rest of 2025 and $56 per barrel in 2026, down by $2 per barrel from its previous estimate. Separately, Al-Kaabi, who also runs the state-owned QatarEnergy, said the Gulf nation is not concerned about a glut in the supply of liquefied natural gas or competition from the US. Qatar is the world’s third largest producer of LNG. “US volumes are going mostly to Europe, South America,” he said. “Our volume will predominantly be serving Asia.” Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
