Oil output cuts by March
abu dhabi — Opec and non-Opec countries will ink an agreement on oil output cuts in Saudi Arabia by March, UAE Minister of Energy Suhail bin Mohammed Faraj Faris Al Mazrouei said.
“Saudi Arabia will host a summit where a final declaration of cooperation will be inked to establish cooperation between Opec and nonOpec. Formally, everyone wants to work together and ensure a balanced market. Everyone has signed from non-Opec. By the end of March, the document will be ready for signature. The idea is to work together and achieve a market balance,” Al Mazrouei said in Abu Dhabi.
The minister said the decision in Vienna to cut production was the ‘right choice’. “We made the right decision and that’s the most important thing. It is not how difficult it is, but how to get the decision out.”
From January, the UAE and other Opec countries will cut 2.5 per cent of oil output and non-Opec countries will slash around 2 per cent of their production.
He said Opec countries weren’t just looking to manage oil prices but also achieve a market balance.
“We had a risk of an oversupplied market and glut in 2019 if we didn’t do anything about it. All members despite their differences have been very cooperative to strive for market balance again. If the market is oversupplied, nobody benefits. We are not playing with the price. What we want is the right
balance. No one wants higher oil prices. That leads to a slowdown in the economy and has consuming countries crying.”
The minister said the UAE wasn’t concerned with the US’ pressure tactics. “We are not concerned or taking instructions from anyone. Every country has a sovereign right
to produce what they think is fair to them. We are a commercial organisation and not a political one. We will try to adjust our production to balance the market.”
He said Qatar’s Opec exit was “a surprise”. “It is their sovereign right and we respect it.”