UAE: OPEC+ will hold extra meeting if output cuts 'not enough'

By Ahmed Hagagy KUWAIT (Reuters) - OPEC and allied oil producers are ready to hold an extraordinary meeting and will do what is needed if the current cut in oil output by 1.2 million barrels per day does not balance the market next year, the United Arab Emirates' energy minister said on Sunday. Extending the output agreement signed in early December will not be a problem and producers will do as the market demands, Suhail al-Mazrouei told a news conference at a gathering of the Organization of Arab Petroleum Exporting Countries in Kuwait. 'What if the 1.2 million barrels of cuts are not enough

Reuters December 24, 2018 00:05:21 IST
UAE: OPEC+ will hold extra meeting if output cuts 'not enough'

UAE OPEC will hold extra meeting if output cuts not enough

By Ahmed Hagagy

KUWAIT (Reuters) - OPEC and allied oil producers are ready to hold an extraordinary meeting and will do what is needed if the current cut in oil output by 1.2 million barrels per day does not balance the market next year, the United Arab Emirates' energy minister said on Sunday.

Extending the output agreement signed in early December will not be a problem and producers will do as the market demands, Suhail al-Mazrouei told a news conference at a gathering of the Organization of Arab Petroleum Exporting Countries in Kuwait.

"What if the 1.2 million barrels of cuts are not enough? I am telling you that if it is not, we will meet and see what is enough and we will do it," Mazrouei said.

"The plan (to cut oil production) is well studied but if it does not work, we always have the power in OPEC to call for an extraordinary meeting," he added.

"If we are required to extend for (another) six months, we will do it... I can assue you an extension will not be a problem.”

The Organization of the Petroleum Exporting Countries (OPEC) and its Russia-led allies agreed earlier this month to slash oil production by more than the market had expected.

Still, oil prices fell on Friday to their lowest since the third quarter of 2017 as global oversupply kept buyers away from the market ahead of holidays over the next two weeks.

The UAE minister said a joint OPEC and non-OPEC monitoring committee would meet in Baku at the end of February or the beginning of March, as producers aim to return the oil market to the balance reached in the summer of 2018.

Mazrouei was speaking at a joint news conference with the Iraqi and Algerian energy ministers as well as Saudi Arabia's OPEC governor, Adeeb Al-Aama.

Al-Aama said oil market oversupply had fallen to 37 million barrels of crude in November from 340 million barrels in January 2017, when OPEC and its allies began cutting production in an attempt to lift the price of crude.

Iraqi Oil Minister Thamir Ghadhban said there was an expectation that the oil output cut decision could be renewed, adding that Iraq would be willing to extend the production agreement in April. OPEC is set to hold its next oil output policy decision meeting that month in Vienna.

"We will be watching the prices and how they react over time," Ghadhban said.

Saudi Arabia is fully committed to the reduction agreement, Al-Aama said, adding that the world's top oil exporter's production in January is see at 10.2 million bpd, lower than its output target of 10.3 million bpd under the recent pact.

The kingdom has over committed with previous cuts, reducing more than its share and reaching a compliance of 120 percent from January 2017 until May 2018, Al-Aama said.

(Writing by Nafisa Eltahir and Rania El Gamal; Editing by Dale Hudson, Hugh Lawson and Richard Balmforth)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.