Oil producers are expected
to unanimously extend a production cut accord later this month but its duration
is being discussed, the UAE energy minister said on Monday.
“I
think this group of committed and responsible producers came together… and I
think they will continue to do what it takes to take us to the next level,”
United Arab Emirates Energy Minister Suheil al-Mazrouei told an international
oil conference in Abu Dhabi.
He
said 158 million barrels of surplus crude oil remain on the market and “we need
to reduce that — which means there is a potential for extension”.
Mazrouei
said there was near-unanimity among the 24 OPEC and non-OPEC producers which
agreed a year ago to cut output by 1.8 million barrels per day.
He added that he had “not heard anyone” speak of allowing the extension to
expire, although the duration of the new extension would be “subject to
discussion”.
“I
am hopeful that we will reach an agreement that will lead to more stabilisation
in the market and more investments coming to the market,” he said.
As
a result of the cuts, oil prices have rebounded to more than $64 a barrel from
$40 a year ago, and huge stocks of crude built up over the past three years
have reduced.
Mazrouei,
whose government is OPEC’s fourth largest oil producer, said he was not happy
with the sharp fluctuations in prices, saying they need to be more stable.
OPEC
ministers are holding a crucial meeting in Vienna at the end of November to
discuss extending the cuts deal as well as imposing the quota system on
countries that have so far been exempted: Libya, Iran and Nigeria.
Cartel
kingpin Saudi Arabia and the world’s top producer Russia have voiced support
for a rollover to the deal, the duration of which remains up for debate.
Source: PunchNG
No comments: