Oil-producers to review cuts impact, sign pact in April: UAE
Oil producers, who earlier agreed to trim production to boost prices, will meet in April to review the impact and sign a long-term pact, the UAE's Energy Minister said. Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers decided to cut output by 1.2mn barrels/day for 6 months from January after world prices shed a quarter of their value in just weeks.
The current oil prices hover around Rs. 4,323 per barrel
Prices currently hover around $60 (Rs. 4,323) a barrel, down from more than $85 (Rs. 6,124) a barrel in early October, in the face of fears of weaker demand and an increase in the supplies. "In April, we will have a meeting to review the decision," United Arab Emirates Energy Minister Suhail al-Mazrouei said on the sidelines of a conference in Dubai.
ADNOC has already informed about 2.5% production cut: Mazrouei
Mazrouei said that national oil company ADNOC has already informed clients that it will cut production by 2.5% from January. The UAE, OPEC's fourth largest producer, has been pumping around 3 million barrels per day (bpd). He said that the producers decided to meet in April instead of June to allow them "to take the required decision," before the six months are up.
Cuts will help restore balance to world market, hopes Mazrouei
The minister said the cuts will help restore balance to the world market in 2019. "We expected there will be a slowdown in demand for oil and accordingly decided to cut production," said Mazrouei, who's serving as minister since 2013. The producers will also sign a long-term agreement in April to formalize the cooperation between OPEC and non-OPEC parties to the cuts, he added.
'OPEC is no longer the 30mn barrel (per day) group'
Mazrouei further said alliance with Russia and other non-cartel producers has made OPEC stronger and more effective. "OPEC is no longer the 30mn barrel (per day) group. With OPEC, non-OPEC including Russia, we're now talking about 50mn barrels or half the world's production," he added.
