Tuesday 17 September 2019

Opec 'will meet' if oil output cuts don't work

 

UAE Energy Minister Suhail al-Mazrouei. Photo: REUTERS/Heinz-Peter Bader
UAE Energy Minister Suhail al-Mazrouei. Photo: REUTERS/Heinz-Peter Bader

Ahmed Hagagy

If an agreed cut in oil output by 1.2 million barrels per day is not enough to balance the market, the Organisation of Arab Petroleum Exporting Countries (Opec) and allied producers will hold an extraordinary meeting and do what is necessary, the United Arab Emirates energy minister said yesterday.

Extending the output agreement signed in early December will not be a problem and producers will do as the market demands, Suhail al-Mazrouei told a news conference at a gathering of Opec in Kuwait.

"What if the 1.2 million barrels of cuts are not enough?

"I am telling you that if it is not, we will meet and see what is enough and we will do it," Mr Mazrouei said.

"The plan (to cut oil production) is well studied but if it does not work, we always have the power in Opec to call for an extraordinary meeting," he added.

Opec and its Russia-led allies agreed this month to slash oil production by more than the market had expected in order to keep prices higher.

Still, oil prices fell on Friday to their lowest since the third quarter of 2017 as global oversupply kept buyers away from the market ahead of holidays over the next two weeks.

The Emirati minister said that a joint Opec/non-Opec monitoring committee would meet in Baku, Azerbaijan, at the end of February or the beginning of March, as producers aim to return the oil market to the balance reached in the summer of 2018.

Irish Independent

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