Abu Dhabi: The recent rally in oil prices to around $50 per barrel will reflect positively on the UAE economy, a top ranking official from the Ministry of Economy said in Abu Dhabi on Sunday.

“We see a positive trend in the oil prices which eventually will reflect positively on the UAE economy. From less than $30, oil prices have moved to $50 which is good,” said Abdul Aziz Al Shehhi, Under Secretary of the Ministry of Economy speaking to Gulf News on the sidelines of UAE-South Korea Joint Economic Committee meeting.

Al Shehhi did not provide an estimate if oil prices would continue to rise further.

A member of the Organisation of the Petroleum Exporting Countries (Opec), the UAE produces about 2.8 million barrels of oil per day with plans to expand the capacity to 3.5 million barrels per day.

The UAE along with other Opec members have decided to keep the production levels unchanged despite drop in oil prices in their previous meetings in Vienna.

The strategy paid off with a number of high cost producers in the US ceasing production due to low oil prices.

Opec member countries will meet again on Thursday to take stock of the situation and determine the future strategy in supporting oil prices though no decision is expected at the meet, according to analysts.

“The best Opec can do is to sit down and talk oil instead of letting politics and regional differences get in the way,” Ole Hansen, Head of Commodity Strategy at Saxo Bank said.

“Saudi Arabia’s new oil minister is expected to repeat the hardline approach seen at the failed Doha meeting. How that will go down, especially with Iran remains to be seen.”

“Rebuilding the group’s reputation should be a priority. Whether they succeed or not will determine the potential impact on the market.”

In the last month’s meeting in Doha oil producing countries failed to reach an agreement to freeze production at January levels.

Saudi Arabia, the biggest oil producer insisted that Iran, which did not participate in the meet join the deal as both countries compete to increase their market share.