Abu Dhabi: The UAE’s energy minister Suhail Al Mazroui sent out a strong message on Monday night, saying the Organisation of Petroleum Exporting Countries (Opec) and the non-Opec group will do everything possible to balance oil markets. He also said Qatar’s exit from Opec will not impact the group or production.
Stating that the Opec’s decision at the Vienna meeting was the right one, Al Mazroui said the dynamics in the oil market are changing.
“We need to be inclusive with partners.”
He also added that Opec will not take instruction from anyone and every country has a sovereign right.
“Opec is growing and not shrinking in terms of countries joining us. We have two countries joining, including the Equatorial Guinea and Ghana... [the group] is attracting more non-Opec countries. South Africa and other countries may join,” he said speaking to reporters. He said Qatar’s decision surprised everyone.
He also said the relationship between Opec and non-Opec member countries would be formalised in the next three months so that oil-producing countries can work together to rebalance oil markets.
“Declaration of cooperation will be used as a base and refined more to put it in the final format and will be finalised in the next three months. This is to work together to achieve market balance,” he added.
When asked whether they are planning to extend the agreement beyond six months, he said “let’s wait and see.”
“We are not targeting any price. The adjustment is to reach five year average. You don’t want to see having glut again. What is going to happen in the coming days will depend on a lot of things including sanctions, whether waivers will be extended or not. We have the capacity to balance the market and respond to any spike or under production that happens.”