Omani min­is­ter says OPEC needs deal

7 Days in Dubai - - ADIPEC - @Ma­hakLFC ma­

Oman’s oil min­is­ter has voiced frus­tra­tion at the in­abil­ity of oil pro­duc­ers to come to a de­ci­sion on how much crude they are pro­duc­ing.

Mo­hammed bin Ha­mad Al Rumhi said OPEC has “not been us­ing com­mon sense” when it came to mak­ing de­ci­sions.

The 14 mem­bers are pump­ing about 33 mil­lion bar­rels per day, which has cre­ated an oil glut and kept prices be­low $50 per bar­rel.

This is in con­trast to mid2014, when prices were more than $100 per bar­rel.

Al Rumhi told del­e­gates at ADIPEC that the cri­sis has not been well han­dled.

He said: “OPEC has not been mak­ing de­ci­sions us­ing com­mon sense un­til now. In fact, when­ever OPEC held a meet­ing, oil prices fell down – maybe OPEC should not hold a meet­ing at all.”

He added that com­mon sense on a deal is “pre­vail­ing slowly at OPEC”.

Al Rumhi added: “We have failed to be proac­tive and are not proud of how the mar­ket has panned out. Our in­ter­ven­tion to ad­dress the By Ma­hak Man­nan is­sue so far has not been enough. We are play­ing with fire, economies can be de­stroyed in cer­tain coun­tries.” OPEC mem­bers have re­peat­edly failed to agree on out­put. This is in part be­cause Iran, which has only just seen sanc­tions lifted af­ter decades, wants to boost its econ­omy.

Later this month in Vi­enna mem­bers will dis­cuss a 700,000 bar­rel per day cut in pro­duc­tion.

Oil an­a­lyst Robin Mills, CEO of Dubai-based Qa­mar En­ergy, said: “OPEC has been talk­ing a lot about ac­tively cut­ting and freez­ing pro­duc­tion since April, but there re­ally has not been any ac­tion. If a firm agree­ment does come into place – and the coun­tries stick to it – it will bring a lot of sta­bil­ity in the mar­ket and ad­dress the is­sue of over­sup­ply.”

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