OPEC Is Not the En­emy of the U.S.

Iran News - - INTERNATIONAL -

ABU DHABI (Reuters) - The Or­ga­ni­za­tion of Pe­tro­leum Ex­port­ing Coun­tries is not the en­emy of the United States, United Arab Emi­rates En­ergy Min­is­ter Suhail al-Mazrouei said on Satur­day in Abu Dhabi.

“We are com­ple­ment­ing each other, we are not en­e­mies here,” Mazrouei told an in­dus­try con­fer­ence in Abu Dhabi, ad­dress­ing the re­la­tion­ship be­tween OPEC and ma­jor con­sum­ing coun­tries like the United States.

OPEC, and other lead­ing global oil pro­duc­ers led by Rus­sia, agreed in De­cem­ber to cut their com­bined oil out­put by 1.2 mil­lion bar­rels per day from Jan­uary in or­der to bal­ance the oil mar­ket.

The de­ci­sion came de­spite U.S. Pres­i­dent Don­ald Trump’s calls to oil ex­porters to re­frain from cut­ting pro­duc­tion, say­ing it would trig­ger higher oil prices world­wide.

Mazrouei said he ex­pected an av­er­age price of around $70 a bar­rel for Brent crude this year, an es­ti­mate shared by his Omani coun­ter­part Mo­hammed al-Rumhi who, ad­dress­ing the same event, said he ex­pected a price of be­tween $60 and $80 a bar­rel.

The 1.2 mil­lion bpd cut should be enough to bal­ance the mar­ket, Mazrouei said, ex­pect­ing the cor­rec­tion to start this month and to be achieved in the first half of the year.

He said there was no need for ma­jor oil ex­porters to hold an ex­tra­or­di­nary meet­ing be­fore the one planned in April.

“Things are work­ing well,” said Oman’s Rumhi, whose coun­try is tak­ing part in the sup­ply re­duc­tion agree­ment with­out be­ing a mem­ber of OPEC. He also said there was no need for ma­jor ex­porters to meet be­fore April.

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