Oil pro­duc­ers to ex­tend cuts to re­bal­ance mar­ket: UAE

Daily Mirror (Sri Lanka) - - PROVINCIAL -

Oil pro­duc­ers are ex­pected to unan­i­mously ex­tend a pro­duc­tion cut ac­cord later this month but its du­ra­tion is still un­der dis­cus­sion, the UAE en­ergy min­is­ter said yes­ter­day.

“I think this group of com­mit­ted and re­spon­si­ble pro­duc­ers came to­gether... and I think they will con­tinue to do what it takes to take us to the next level,” United Arab Emi­rates En­ergy Min­is­ter Suheil al-mazrouei told the ADIPEC in­ter­na­tional oil con­fer­ence in Abu Dhabi.

He said 158 mil­lion bar­rels of sur­plus crude oil re­main on the mar­ket and “we need to re­duce that -- which means there is a po­ten­tial for ex­ten­sion”.

Mazrouei said there was nearuna­nim­ity among the 24 OPEC and NON-OPEC pro­duc­ers which agreed a year ago to cut out­put by 1.8 mil­lion bar­rels per day.

The min­is­ter said that he had “not heard any­one” talks about al­low­ing the cuts deal to ex­pire, although the du­ra­tion of the new ex­ten­sion would be “sub­ject to dis­cus­sion”. “I am hope­ful that we will reach an agree­ment that will lead to more sta­bil­i­sa­tion in the mar­ket and more in­vest­ments com­ing to the mar­ket,” he said.

Mazrouei said an es­ca­lat­ing dis­pute be­tween re­gional pow­ers and OPEC mem­bers Saudi Ara­bia and Iran will not pre­vent a new ex­ten­sion.

As a re­sult of the cuts, oil prices have re­bounded to more than US $ 64 a bar­rel from US $ 40 a year ago, and huge stocks of crude built up over the past three years have re­duced.

Mazrouei, whose gov­ern­ment is OPEC’S fourth largest oil pro­ducer, said he was not happy with the sharp fluc­tu­a­tions in prices, say­ing they need to be more sta­ble.

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