UAE optimistic on the extension of the Opec deal

Abu Dhabi: UAE energy minister Suhail  Al Mazroui expressed optimism about oil producing countries reaching an agreement on the extension of the production cuts when they meet in Vienna on November 30.

“We are looking forward to an agreement but I cannot tell what level of consensus. We will be talking to different ministers and I am optimistic about reaching an agreement,” said Al Mazroui while speaking to reporters on the sidelines of GPCA forum in Dubai on Tuesday.

He also said the market is at a much better situation than it was last year due to compliance and commitment by Opec and non-Opec members.

“We are looking for another year of correction and recovery. Opec countries and the UAE, they are all committed to fix the issue of five year of over storage. We feel that time should be given to the market for a full recovery. We are looking for the consensus when we meet.”

When asked whether Russia is on board for the extension, he said he cannot comment on any other country before meeting.

Meanwhile, Saudi Arabia energy minister Khalid Al Falih said on Tuesday it's too soon to say on the extension of the production agreement by Opec member countries.

"Let's wait till November 30.  It's too soon to say if Opec agrees on longer oil cuts," he told reporters in Dubai at the same forum when asked whether oil producing countries will be extending the output agreement beyond March next year. 

Opec countries in cooperation with other producers like Russia are cutting output by about 1.8 million barrels a day to prop up oil prices.

Oil producing countries will meet in Vienna on November 30 to take a decision on the future policy.