UAE committed to oil output cut deal

abu dhabi — The UAE will remain committed to the global oil output reduction deal to eliminate the remaining glut on the market which amounts to 100 million barrels to reach the average target of the coming five years, according to Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Industry.

Opec and non-Opec commitment to the cut deal has significantly reduced the global crude reserves by more than 220 million barrels at OECD countries since the beginning of 2017 as compared to the average recorded over the previous five years, the minister said in a press statement at the Ministry’s premises in Abu Dhabi on Saturday.

“Compliance to the Declaration of Cooperation announced during the Opec Ministerial meeting on November 30, 2017, to cut oil output by a combined 1.8 million b/d amounted for the first time in history to 129 per cent in December 2017 among Opec’s 24 member and nonmember nations,” he added.

The UAE minister of energy and industry, who has been elected Opec conference president for 2018, commended the efforts made by Khalid A. Al Falih, Minister of Energy, Industry and Mineral Resources of Saudi Arabia, during his chairmanship of Opec in 2017, noting that the Saudi minister exerted “unique efforts that added significant values to the international endeavours to stabilise the market and we are determined to pursue the same path and follow on the constructive and fruitful work performed during 2017.”

“We are now set to initiate innovative efforts to deliver the future and build on the Declaration of Cooperation reached by Opec member- and non-member states last year to secure the sustainable development goals,” Al Mazrouei added.

“We will continue in Opec to closely watch the market in collaboration with our non-member partners and we will spare no effort to reach the state of market stability aspired by both producers and consumers.”

The unprecedented collaboration of last year has helped achieve

We will continue to watch the market... and we will spare no effort to reach the state of market stability aspired by both producers and consumers Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Industry

impressive successes in restoring the needed supply-demand balance in a way which will help secure the aspired sustainable stability over the short, medium, and long terms, he added, affirming that all possible efforts will be made to avoid the fluctuations and sharp plummet in global prices witnessed in 2014, 2015 and 2016.

“Reducing spending by more than $1 trillion over the past years has resulted in massively scaling down production and exploration operations at a time Opec now forecasts demand to exceed supply over the long run by 15.8 million b/d,” the minister said.

The world economic growth has hit record highs unseen since the 2008 global crunch which means more demand is forecast over the coming years, he added, noting oil and gas will account 52 per cent of the global energy mix by 2040. — Wam