No talks on oil output increase: Al Mazrouei

Major oil producers denied a media report that they are engaged in discussions with Opec+ members to increase crude production for their next meeting on December 4.

The UAE Minister for Energy and Infrastructure Suhail bin Mohammed Faraj Faris Al Mazrouei denied a report published by the Wall Street Journal on Monday that the Organisation of the Petroleum Exporting Countries (Opec) and its allies including Russia, known as Opec+ group, is considering an “increase of up to 500,000 barrels a day” ahead of the next month meeting. The report cited unidentified Opec delegates.

Al Mazrouei denied that the

UAE is engaging in any discussion with other Opec+ members to change their latest agreement and said that the agreed deal is valid until the end of 2023.

“We remain committed to Opec+ aim to balance the oil market and will support any decision to achieve that goal,” Al Mazrouei said in a Twitter post.

Saudi Arabia also denied the Wall Street Journal report and backed the UAE'S stance saying a cut approved in October would stay in place until the end of 2023.

The official Saudi Press Agency said on Monday night that Saudi Energy

Minister Prince Abdulaziz bin Salman “categorically denies” the report. “It is well known, and no secret, that Opec+ does not discuss any decisions ahead of its meetings,” SPA quoted Prince Abdulaziz as saying.

“The current cut of two million barrels per day by Opec+ continues until the end of 2023 and if there is a need to take further measures by reducing production to balance supply and demand, we always remain ready to intervene,” he said.

Kuwait Oil Minister Bader Al Mulla on Tuesday also denied reports that there have been discussions to increase oil production at the next Opec+ meeting, state new agency Kuna reported.

“Kuwait is keen to maintain stability and balance in oil markets,” the agency quoted Mulla as saying.

The head of Iraq's state oil marketer Somo Alaa Alyasri told Reuters on Tuesday there have been no discussions about Opec+ deciding on a production increase at its next meeting. “There are no disucssions around this topic,” Alyasri said.

Meanwhile, oil prices staged a rebound on Tuesday after the UAE, Saudi Arabia and other major oil producers said Opec+ is stick with output cuts and could take further steps to balance the market, outweighing global recession worries and concern about China's rising Covid-19 case numbers.

Brent crude rose 37 cents, or 0.4 per cent, to $87.82 in early trading on Tuesday while US West Texas Intermediate crude was up 46 cents, or 0.6 per cent, at $80.50.

“Crude oil prices are trying to recover their losses,” Naeem Aslam, analyst at Avatrade said. “That Saudi Arabia has denied there was any discussion about an increase in oil supply with Opec and its allies has supported the market today,” he said.

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We remain committed to Opec+ aim to balance the oil market and will support any decision to achieve that goal,”

Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister for Energy and Infrastructure