Talks will be re­vis­ited in Tang­iers

7 Days in Dubai - - BUSINESS - @B_shosh

Ex­perts be­lieve a slow down in oil pro­duc­tion could greatly ben­e­fit the UAE, but doubts have been cast on whether an agree­ment on out­put will be made when OPEC mem­bers meet to­day.

The fo­rum brings to­gether the In­ter­na­tional En­ergy Agency (IEA) and OPEC in Tang­iers, Al­ge­ria start­ing to­day un­til Wed­nes­day and it will pro­vide the op­por­tu­nity for the 14 oil-pro­duc­ing coun­tries to re­visit talks that col­lapsed in April.

OPEC mem­bers may fall short of reach­ing a deal for an oil pro­duc­tion freeze, but their talks could pave the way for a future deal.

In the last two years an over-pro­duc­tion trig­gered a col­lapse in the price of oil, hit­ting the economies of Gulf coun­tries.

Robin Mills, chief ex­ec­u­tive of re­gional en­ergy con­sul­tants Qa­mar En­ergy, said while their chances of reach­ing a deal are slim, a deal would prove pos­i­tive for the UAE econ­omy.

He said: “Of course you would see petrol prices at the pump go up, but over­all it would have a pos­i­tive im­pact on the UAE econ­omy and that’s why the UAE and other oil pro­duc­ers are in­ter­ested in hav­ing these talks.”

Iran, who were ab­sent from April’s talks in Qatar, are likely to at­tend this year, and will be met with a “more con­struc­tive” of­fer by Saudi By Shoshana Ke­dem Ara­bia. Mills added: “They [Saudi Ara­bia] would be pre­pared to con­sider a freeze, if Iran would freeze at 3.6 mil­lion [bar­rels]. But I still don’t think they’ll reach an agree­ment with real im­pact in Al­giers. If they do, it will be a very vague and non-lim­it­ing one.” Mills said he ex­pects the UAE would sup­port the Saudi po­si­tion on a deal, which would be good news for ev­ery­one in the coun­try.

He said: “If there is a deal which has real teeth, and I’m quite scep­ti­cal of that, then it would sup­port oil prices, and they would go up. That means more money for the coun­try, and that’s pos­i­tive for peo­ple work­ing in the UAE econ­omy any­where, par­tic­u­larly peo­ple em­ployed by the govern­ment and in the oil sec­tor.”

The talks will take place on a back­drop of oil prices near $50 per bar­rel, a new en­ergy minister for Saudi Ara­bia, oil-in­duced tur­moil in Venezuela and low pro­duc­tion in Nige­ria.

Aside from this week’s in­for­mal talks be­ing held this week, in the ab­sence of an emer­gency meet­ing the next of­fi­cial OPEC meet­ing would be in Novem­ber.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.