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04 October 2023

Agreement on extension of oil output cut till Q1 2018 will balance market: UAE Energy Minister


Minister of Energy Suhail bin Mohammed Faraj Faris Al Mazrouei, said the agreement reached unanimously the Organisation of the Petroleum Exporting Countries (OPEC) on Friday to extend the production cut by 1.8 million barrels per day until the first quarter of 2018, will help balance the market.

Al Mazrouei expressed his satisfaction at the resolutions of the 37th OPEC ministerial meeting, and the second ministerial meeting of the countries participating in the reduction of Non-OPEC oil production.

The UAE minister predicted that at least 200 million barrels of global stock would be reduced to achieve the members' target of reaching the average levels of commercial stock for the previous five years.

He expressed his optimism about the gradual start of the oil investments at world markets after this agreement to achieve the harmonisation of future demand for oil.

Al Mazrouei noted the levels of global demand for oil this year look better than expected by the Organisation with 1.3 million barrels per day, and that the third quarter of this year will see a recovery in the demand for petroleum products as usual during the holidays, and increased demand for the use of transport.

He welcomed the accession of the Republic of Equatorial Guinea as a new member to the OPEC, and a country supporting the production cut agreement.