Abu Dhabi: Opec (Organisation of the Petroleum Exporting Countries) policy of giving the market time to balance itself is working, the UAE Energy Minister Suhail Al Mazroui said in a tweet ahead of the crucial Opec meeting in Vienna.
“We believe that Opec policy of giving the market time to balance itself have proven to work but it still need some time for proper balance,” Al Mazroui said.
“The market is still in correction mode and the signs are positive,” he added.
The thirteen member oil producers group has left production unchanged in the previous meeting in order to squeeze out high cost shale producers in the US. The strategy seems to have been working with oil rigs falling in the US and prices recovering in the past few months.
From less than $30 per barrel in January, oil prices have moved towards $50 per barrel due to increase in demand and oil supply disruptions in Nigeria and Canada.
Emmanuel Ibe Kachikwu, Nigeria’s minister of state for petroleum resources said the oil market is “doing good. However, it is “too early” to say whether oil prices are recovering, he said on arrival in Vienna on Tuesday, according to Bloomberg.
