Abu Dhabi: Opec and its allies will consider deeper cuts if a 1.2 million barrels-a-day reduction isn’t enough to balance the market, UAE energy minister Suhail Mohammad Al Mazroui, Minister of Energy and Industry, said in Kuwait on Sunday.
Extending the agreement signed in early December on oil output cuts will not be a problem and producers will do as the market demands, Al Mazroui, said adding Opec and non-Opec producers will hold an extraordinary meeting and do what is necessary to balance the market.
The comments come as oil prices slide due to overproduction and concerns over the growth of the world economy.
Opec and non-Opec members like Russia will be cutting output by 1.2 million barrels per day starting from January to rebalance oil markets and support prices. The deal is for six months.
(With inputs from agencies)
