Abu Dhabi: The UAE energy minister Suhail Al Mazroui is optimistic that output agreement between Opec and non-Opec members would be extended beyond March.
“We are hopeful that meeting in November will be a good meeting. We hope to align all of us towards something that could help the market. I am hopeful that it will not be difficult to reach a consensus [on extension],” Al Mazroui said while speaking to reporters on the sidelines of an event in Abu Dhabi on Sunday.
Asked if they would be inviting new members to join the agreement, he said it is on the table but did not disclose details.
“All is on the table. Inviting new members, talking about the rollover, how many months to roll it over to. All of this is going to be subject to what we [hear] from the secretariat,” Al Mazroui said.
In December last year, the Organisation of the Petroleum Exporting Countries (Opec) and other producers including Russia, Mexico and Kazakhstan, reached a deal to reduce output by about 1.8 million barrels a day to eliminate a global surplus that was depressing oil prices.
The agreement, which initially called for a six-month period, was later extended by another nine months to the end of March 2018. Libya and Nigeria are exempt from the agreement.
Higher oil
Commenting on the market recovery, Al Mazroui said: “Market will see some recovery in the second half. We are [already] seeing that recovery.”
Oil prices are currently trading higher due to output cut agreement as well as due to steady economic growth and rise in geopolitical tensions, including the recent Kurdish independence referendum.
Brent, the global benchmark is trading at $55.62 (Dh204) per barrel, down by 2.42 per cent and West Texas Intermediate at $49.29 per barrel.
Russian President Vladimir Putin also hinted last week on the extension of the production cut agreement till the end of next year.
