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.