Fully stable global oil sector possible in ’18
abu dhabi — The world oil market has the potential to reach full stability in 2018 as the level of inventories are expected to be reduced to a comfortable level, said Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Industry, ahead of the Opec Ministerial Meeting in Vienna where it has been agreed to extend oil output cuts until the end of 2018.
In an interview with the special edition of the Opec Bulletin prior to the first anniversary of Opec and non-Opec ‘Declaration of Cooperation’ on December 10, the minister said: “For stability to happen, I think we need to consider renewing or extending the deal further and we need to see the same level of compliance achieved in 2017.”
The declaration was a landmark decision reached by 13 Opec and 11 non-Opec producers at the joint ministerial-level meeting in Vienna on December 10, 2016. The Opec and its allies outside the group agreed on November 30 to maintain oil production cuts until the end of 2018. A joint Opec and non-Opec communique said the next meeting in June 2018 would present an opportunity to adjust the agreement based on market conditions.
“The Declaration of Corporation by Opec and non-Opec participating countries gave hope and stability to the market at a very critical time, especially when non-Opec oil producing countries showed commitment... even though this is the first time that they worked together with the Opec, which was a testimony to their responsible efforts toward market stability,” Al Mazrouei said. — Wam