• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Why hydrogen economics is does not work
  • 33 mins The EU Loses The Principles On Which It Was Built
  • 5 hours Starvation, horror in Venezuela
  • 2 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 5 hours Crude Price going to $62.50
  • 21 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 58 mins WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 14 hours Chinese EV Startup Nio Files for $1.8 billion IPO
  • 1 day Oil prices---Tug of War: Sanctions vs. Trade War
  • 1 day Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 1 day Correlation does not equal causation, but they do tend to tango on occasion
  • 1 day Monsanto hit by $289 Million for cancerous weedkiller
  • 17 hours < sigh > $90 Oil Is A Very Real Possibility
  • 29 mins Saudi Arabia Cuts Diplomatic Ties with Canada
What Happens To Syrian Oil Post-Civil War?

What Happens To Syrian Oil Post-Civil War?

After years of conflict in…

UAE Slashes 200,000 Bpd From Daily Output In March

OPEC

The United Arab Emirates cut daily crude oil production by nearly 200,000 barrels this month, in keeping with the country’s obligations under the OPEC market rebalancing agreement. The size of the cut came partly on the back of refinery maintenance season, Energy Minister Suhail al-Mazrouei said.

Over the next two months, the UAE will cut another 278,000 bpd, demonstrating its compliance with its quota under the agreement. Abu Dhabi National Oil Company informed its clients yesterday that it will be selling less crude in May. The company said it will be reducing the shipments of the two local grades, Murban and Das, by 7 percent.

Speaking on the sidelines of an industry event in Abu Dhabi, Mazrouei commented that the deal is going well, with supply shrinking, which should improve demand. He noted that the current state of global inventories is a result of maintenance season in the U.S., and after it ends, stockpiles will start going down.

Al-Mazrouei declined to say whether he expected better oil prices in the second half of the year, reiterating the leitmotif of Saudi Arabia: that the purpose of the deal was to rebalance the fundamentals of oil and attract more investments in the industry rather than prop up prices.

Related: Shell’s New Permian Play Profitable At $20 A Barrel

Yesterday, the Ministry of Energy reported that average daily production in 2016 stood at 3.089 million barrels, with the November figure at 3.195 million bpd. OPEC members agreed to take as base line their November output, so this is the amount that the UAE is weighing current cuts against, with Al-Mazrouei saying yesterday that the country will exceed its quota by between 15 and 33 percent over the six-month duration of the deal.

The combined amount that OPEC members have committed to take off the global markets is 1.2 million bpd, in addition to which 11 non-OPEC members have pledged to cut another 600,000 bpd.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News