UAE- Low prices start to freeze oil production says Al Mazroui

Date

3/16/2016 6:36:43 PM

(MENAFN- Khaleej Times)

Abu Dhabi: There's no commercial sense in increasing oil output at the current price levels said the UAE Energy Minister Suhail bin Mohammed Faraj Al Mazroui.

"I believe that the current oil prices are forcing everyone to freeze so I think it is happening as we speak. It doesn't make any sense for anyone to increase production at the current prices" said Al Mazroui while talking to media on the sidelines of the Global Aerospace Summit.

Front-month Brent crude futures were seen trading at $39.10 per barrel on Monday up 38 cents from their last settlement and around a third higher than their January low when prices fell to levels not seen since 2003.

Al Mazroui said he was aware of talks to hold a meeting between the Organisation of Petroleum Exporting Countries and non-Opec producers but that he has not received an invitation.

"We hear about a meeting. I have not received an official invitation for an Opec and non-Opec meeting" he said.

Russian Energy Minister Alexander Novak said on Friday that a meeting between Opec and other leading oil producers about freezing output could take place between March 20 and April 1. Saudi Arabia and non-Opec producer Russia the world's two largest oil exporters agreed last month to freeze output at January levels to prop up prices if other nations agreed to join the first global oil pact in 15 years.

"The majority of the world 99.8 per cent may be 99.9 per cent are not going to increase production. To the contrary many producing assets are losing now at the current oil prices... We are seeing a reduction and we will see a reduction in those fields" the minister said.

"This is all good news towards balancing the market. We just need to be patient. It's not happening in weeks or months. Correcting to a sustainable price will take time. I'm still optimistic that before the end of year we will see a correction."

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.