Published: Tue, September 10, 2019
Global News | By Blake Casey

UAE energy minister says oil producers are 'committed' to balancing market

UAE energy minister says oil producers are 'committed' to balancing market

Mills said Prince Abdulaziz will likely maintain the deal al-Falih struck with global oil producers to cut production, and not be able to increase them given the current market conditions. Risk assets such as oil and equities were also boosted by new stimulus measures in China and expectations of lower interest rates in the US.

The OPEC petroleum exporters' cartel and key independent producers want to halt a slide in prices that has persisted despite previous output cuts and USA sanctions that have squeezed supply from Iran and Venezuela.

On Sunday, the United Arab Emirates' energy minister Suhail al-Mazrouei said OPEC and non-OPEC producers were "committed" to achieving oil market balance.

The issue of uranium enrichment has been a sticking point with Washington, especially after Crown Prince Mohammed bin Salman said in 2018 that the kingdom would develop nuclear arms if regional rival Iran were to.

"Markets will need to see concrete progress on the production front, even as the world's economy slows, to sustain gains", said Jeffrey Halley, senior market analyst at OANDA.

But I guess desperate times call for desperate measures.

"Do we have a recession today? No".

Previous supply cuts have mostly succeeded in bolstering prices.

Prince Abdulaziz also alluded to the sense that Saudi Arabia is shouldering the burden of production cuts, while other nations - notably Nigeria and Iraq - are flouting the limitations.

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That came as a faltering global economy and a boom in United States shale oil threatened to create a global glut in supply. He takes charge as the Organization of Petroleum Exporting Countries and its allies, most notably Russian Federation, work to bolster prices at a time when a raging trade war between the USA and China weighs on global demand.

"What is happening to oil prices is outside the control of OPEC and certainly stronger than its capability", Bouenain told AFP.

The price of Brent crude surged on the comments and was trading near $62.75 a barrel, well below the $80 a barrel that the kingdom based this year's budget on.

The deliberations also coincide with stymied production from Iran and Venezuela and slower growth in USA output, meaning that supplies are not excessively high.

No decisions will be taken at Thursday's meeting, but it should produce recommendations ahead of an OPEC+ ministerial meeting in Vienna in December.

"The priority remains removing the lingering threat of another crude price swoon by preventing stock builds", said Bob McNally, president of Rapidan Energy Group.

But the problem will be deciding which member countries will shoulder the burden of any new cuts.

"He is the institutional memory of the Saudi oil policy and OPEC".

Futures in NY advanced 2.4% on Monday after newly-appointed Saudi Energy Minister Prince Abdulaziz bin Salman said there won't be radical change in the policy of OPEC+.

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