ZCZC
BCN-18
OIL-OPEC-PRICE-UAE
Oil producers to review cuts impact in April: UAE
DUBAI, Dec 12, 2018 (BSS/AFP) – Oil producers who agreed last week to trim
production to boost prices will meet in April to review the impact and sign a
long-term pact, the UAE minister said Wednesday.
OPEC and some non-OPEC producers decided to cut output by 1.2 million
barrels per day for six months from January after world prices shed a quarter
of their value in just a few weeks.
Prices currently hover around $60 a barrel, down from more than $85 a
barrel in early October in the face of fears of weaker demand and an increase
in supplies.
“In April, we will have a meeting to review the decision,” United Arab
Emirates Energy Minister Suhail al-Mazrouei told reporters on the sidelines
of a conference in Dubai.
Mazrouei said that national oil company ADNOC has already informed clients
that it will cut production by 2.5 percent from January. The UAE, OPEC’s
fourth largest producer, has been pumping around 3.0 million bpd.
He said that the producers decided to meet in April instead of June “to
allow us to take the required decision,” before the six months are up.
The minister said the cuts will help restore balance to the world market in
2019.
“We expected there will be a slowdown in demand for oil and accordingly
decided to cut production,” Mazrouei said.
The producers will also sign a long-term agreement in April to formalise
the cooperation between OPEC and non-OPEC parties to the cuts, the minister
said.
He said the alliance with Russia and other non-cartel producers has made
the Organisation of Petroleum Exporting Countries stronger and more
effective.
“OPEC is no longer the 30 million barrel (per day) group … With OPEC,
non-OPEC including Russia, we are now talking about 50 million barrels or
half the world’s production,” Mazrouei said.
BSS/AFP/SR/2010 HRS