U.A.E. Oil Minister Says OPEC Will Act Again If Prices Decline

EghtesadOnline: A cut in global oil output by 1.8 million barrels a day would be enough to balance the crude market, and OPEC is ready to take further action if prices fail to stabilize, United Arab Emirates Energy Minister Suhail Al Mazrouei said in Abu Dhabi.

News ID: ۷۳۸۴۵۷

07 December 2016

The Organization of Petroleum Exporting Countries decided last week to pare its collective production by 1.2 million barrels a day to counter a global glut, and non-OPEC nations need to share the burden by reducing supply by an additional 600,000 barrels a day, Al Mazrouei said Wednesday. The U.A.E. wants oil producers outside OPEC to make their commitments when the two sides meet Saturday in Vienna, he said.

If OPEC’s production cut doesn’t stop prices from falling to $40 or $50 a barrel, “we will meet again and we will discuss with non-OPEC and we will take the right measures,” he said at a Bloomberg conference in Abu Dhabi.

According to Bloomberg, Russia, which isn’t in OPEC, has pledged to reduce output by 300,000 barrels a day. Members of the group will discuss additional reductions on Saturday with Mexico and other suppliers. The organization decided to pump less oil for six months starting Jan. 1 to try to support prices, which fell by about half from their 2014 peak. Benchmark Brent crude was at $53.86 a barrel in London at 6:58 a.m. local time.