Oil producers to cut output by 2-3 percent – UAE official

UAE Minister of Energy Suhail Al-Mazroui speaks at a news conference with his fellow oil ministers from the UAE, Iraq and Algeria, as well as Kuwait's delegate.

UAE Minister of Energy Suhail Al­Mazroui said on Sunday that oil output by OPEC producers would be cut by three percent, and two percent by non­OPEC countries, effective January.

The crude oil would be slashed according to these levels, in accordance with a concord between the organization and major producers that have no membership ­­ effective for six months. Al­Mazroui was speaking at a news conference with his fellow oil ministers from the UAE, Iraq and Algeria, as well as Kuwait’s delegate, held on sidelines of the 101st meeting of the Organization of Arab Petroleum Exporting Countries (OAPEC).

All stakeholders in the oil sector, except for Iran, Venezuela and Libya, have been informed of the new output cut proportions. On US President Donald Trump’s call on the producers to slash the crude output, Al­Mazroui said “We solely consider the facts and market balance .. we are committed to serve our states’ interests.”

OPEC and non­OPEC oil producers have proven that they honor their obligations, he said, adding that all OPEC members are in consensus on reconsidering the output for preserving the market and their interests.

The United States has become the largest oil producer in the world, he said, noting that its production of shale oil soared to some eight million barrels per day. Al­Mazroui forecast market balance by first quarter of 2019, expressing his belief that trimming the production by 1.2 million bpd would serve this purpose.

Source: KUNA