UAE backs OPEC plan to maintain stable crude supplies

This content was originally posted in 7DAYS UAE website at: UAE backs OPEC plan to maintain stable crude supplies The UAE is committed to supporting OPEC to maintain stable, cost effective and efficient crude supplies, the country’s energy minister has said. Suhail bin Mohammed Faraj Faris Al Mazroui, headed the UAE delegation to the OPEC (Organization of the Petroleum Exporting Countries) meeting in Vienna at the weekend. The meeting concluded with major oil producing nations deciding to keep crude current high levels, effectively acknowledging their inability to push up crude prices. An attempt to nudge the cost of oil higher would have involved lowering output. Instead, OPEC’s endorsement of present output, which is more than 1.5 million barrels a day (mbpd) above the formal ceiling of 30 mbpd, is likely to push the price of oil down further. Al Mazroui said: “The move by many major companies to cancel production capacity expansion projects would have a positive impact on the balance in the supply and demand.” He said he predicted a growth in demand by 1.3 mbpd in 2016, adding: “I am confident the market will stabilise in 2016.” OPEC ministers appeared to have little choice as nations were opposed to reducing output. Instead, OPEC is poised to produce more oil. Iran, which once pumped 4mbpd a day and is now down to about half that, is preparing to come back fully on line. Iraq has seen the fastest rise in crude prouction this year – pumping more than 4 million barrels a day – while ministers agreed to readmit past member Indonesia, that could also add some to the total amount. Conference president Emmanuel Ibe Kachikwu said there was agreement to maintain “current actual production,” which is well above the formal ceiling set at 30mbpd. business@7days.ae Read the original story at: UAE backs OPEC plan to maintain stable crude supplies