Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

OPEC is not the enemy of the U.S., UAE energy minister says

Published 12/01/2019, 12:20
Updated 12/01/2019, 12:20
© Reuters. UAE's Oil Minister OPEC President Al Mazrouei addresses a news conference after an OPEC meeting in Vienna

© Reuters. UAE's Oil Minister OPEC President Al Mazrouei addresses a news conference after an OPEC meeting in Vienna

By Maha El Dahan and Rania El Gamal

ABU DHABI (Reuters) - Oil producer group OPEC 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 the Organization of the Petroleum Exporting Countries and the U.S., a major oil consuming country.

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 to prevent a supply glut and boost sagging prices.

The decision came despite U.S. President Donald Trump's call for the oil exporters' club to refrain from cutting production, saying it would trigger higher oil prices worldwide.

Mazrouei said the average oil price in 2018 was $70 a barrel. His Omani counterpart Mohammed al-Rumhi, addressing the same event, said he expected a price of between $60 and $80 a barrel in 2019.

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.

"We are assuming no changes in the cut that we have," he said.

Mazrouei also said he did not expect OPEC members Venezuela, Libya or Iran, who effectively have exemptions from the cuts, to increase their oil output in 2019, rather it was more likely their production would decline.

Both Mazrouei and Rumhi said there was no need for OPEC and its allies to meet before April when they are set to decide their output policy for the rest of 2019.

© Reuters. UAE's Oil Minister OPEC President Al Mazrouei addresses a news conference after an OPEC meeting in Vienna

"Things are working well," said Rumhi, whose country is taking part in the supply reduction agreement but is not an OPEC member.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.