UAE to continue oil production cuts until markets stabilise, says energy minister

Dubai: Oil production in the UAE will continue to be cut until the global oil markets stabilise, the country’s energy minister said on Sunday.

“We will continue to deliver on the Opec & Non-Opec commitment for voluntary production adjustments, until the global market is re-balanced,” Suhail Al Mazroui, Minister of Energy and Industry, said on Twitter.

The Organisation of Petroleum Exporting Countries (Opec), to which the UAE is a member, and allied-oil producing countries had earlier agreed to curb production levels to bring the markets in balance.

The output cuts, which seek to take 1.2 million barrels off the market every day, took effect in January.

However, according to Bloomberg estimates, only ten out of 21 nations fully complied with the agreement in January.

“In line with Opec & Non-Opec agreement, UAE compliance for the month of February 2019 will meet, if not exceed, its obligations,” said AlMazrouei.

“This will help bring balance and stability to the global oil market.”

Brent crude closed at 65.81 per barrel on March 8, up from $55.46 in January 2.