• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 42 mins Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents * Too late now
  • 8 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 6 hours Will Uncle Sam Step Up and Cut Production
  • 12 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 21 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 21 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 21 hours Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 15 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 1 day NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 1 day Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 2 days Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 1 day Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 1 day Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House

UAE Oil Minister: Too Early To Say If OPEC Deal Should Be Extended

gas storage tanks

It is still too early to say if the oil supply deal should be extended beyond its original six-month period at the end of the first half this year, the oil minister of the United Arab Emirates (UAE) said on Wednesday.

After OPEC and 11 non-OPEC producers decided to cut supply by almost 1.8 million bpd to prop up prices and speed up the oil market rebalancing, Suhail bin Mohammed al-Mazroui, the oil minister of OPEC’s no.4 largest producer, said that the oil market needs competition, Reuters reports, quoting the minister as speaking at an oil industry conference.

“We are not a cartel. We are not targeting a price,” Mazroui said, as quoted by Reuters.

According to the minister, oil prices at US$50 would be fair for some producers and unfair for others.

Regarding the thorny issue of compliance to the supply deal, and asked if oil producers would continue to honor the agreement if oil prices increased, the UAE minister said that they were not doing it “purely for the price”, but also for “the sustainability of the industry”.

Under the OPEC deal from November 30, UAE pledged to cut 139,000 bpd from a reference production level of 3.013 million bpd, and its Abu Dhabi National Oil Company (ADNOC) signaled as early as in mid-December that it would comply with the cuts.

Producers including Saudi Arabia, Kuwait, UAE, Qatar and Oman are complying with the cuts, Kuwait’s OPEC governor Nawal Al-Fezaia told Bloomberg earlier this week. Kuwait is chairing a monitoring committee on the cuts implementation.

Referring to a possible extension of the deal, Al-Fezaia said to Bloomberg: “Extension of the current deal or additional cuts depends on conditions in the oil market, the recovery of prices and reduction of the oversupply.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • EH on January 11 2017 said:
    Not a "Cartel",,, more like Al Capone, Lefty Luchiano, BoomBoom Marconi, and need I mention Zapata oil hierarchy, this whole bunch is ORGANIZED. Not a Cartel,, don't make me laugh

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play