UAE, Saudi Arabia eye oil market stability

Gulf states vow to work with Opec, non-Opec groupings to mitigate supply shortages after US exits nuclear deal

Saudi Arabia and the UAE are committed to ensuring stability in oil markets, the two countries said, following US President Donald Trump’s decision to withdraw from the Iran nuclear deal.

Trump on Tuesday night announced that the US will pull out of the nuclear accord reached between six world powers and Iran in 2015 that lifted sanctions on the Islamic republic in exchange for curbs on its nuclear programme.

In a statement posted on Saudi Press Agency, an official spokesman of Saudi Arabia’s Ministry of Energy, Industry and Mineral Resources said the kingdom remains committed to supporting the stability of oil markets for the benefit of producers and consumers alike, and for sustaining growth in the global economy.

The spokesman also added that the kingdom would work with major producers within and outside the Organisation of Petroleum Exporting Countries (Opec), as well as major consumers, to mitigate the impact of any potential supply shortages.

Saudi Arabia, along with Iran and a number of other oil producers are cutting production by about 1.8 million barrels per day to prop up oil prices and rebalance oil markets.

The agreement, which came into effect early last year, will continue until the end of 2018.

In similar comments, UAE Energy Minister Suhail Al Mazroui tweeted late on Tuesday that Opec is a non-political organisation and its goal is to ensure the stability of oil markets for an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.

“Working collaboratively with our partners, our joint efforts to rebalance the oil market and bring investment back into our industry are progressing well. Collectively, we will continue to focus on these goals,” Al Mazroui said.

Oil prices went up by more than 3 per cent yesterday to reach three-and-half-year highs, after Trump announced the decision to exit the deal.