Abu Dhabi: UAE energy minister Suhail Mohammad Al Mazroui said Organisation of the Petroleum Countries (Opec)’s decision not to cut production was correct and the oil markets will recover soon.
He was speaking at the 10th Arab energy conference in Abu Dhabi on Sunday. He added that drop in oil prices will have a definite impact and will create pressure in the Arab region.
“Oil prices reduced due to massive oil production by non-Opec members and other countries who have entered the market recently,” said the minister. “UAE has full confidence in the last decision of Opec, which decided not to reduce production to enable the market to balance itself. It was a correct decision and will be beneficial to the world market.”
In a meeting in Vienna last month, Opec member countries did not agree to a cut in oil production to stop the slide of prices. The decision has contributed to a further fall in global oil prices.
Al Mazroui underlined the importance of cooperation among Arab countries for a strong strategy on oil. “We need to look into this issue and agree on a comprehensive strategy for the Arab world. The key objective is to boost cooperation and enhance our relationship among member countries. We have high expectations in terms of mutual cooperation.”
He said oil market will soon recover. “We will reach the balance soon. Markets will be improved.
No impact
Saudi Arabia’s Oil Minister Ali Al Nuaimi said plummeting oil prices will not have any impact on the economies of the Arab countries.
“I am very positive about the future of the region. A drop in oil prices will not have an impact on the economy,” he said.
He blamed the current slide in oil prices to lack of cooperation from non-Opec members and misleading information and speculation.” Oil markets and the oil industry will recover soon,” he said.
Kuwait’s oil minister Ali Saleh Al Omair said it’s not fair for Opec to take the decision to reduce the output while others continue to produce oil. “There should be cooperation between all the parties including Opec and others. We also as countries need to supply the market to the extent that we can accommodate and cover the necessary income.”
He said they have the capability to increase supply, but did not take the decision in order to avoid a glut. “There will be balance due to growth in the market.”
The three-day conference is taking place at a time when the world oil prices are going down due to oversupply and weak demand. Oil ministers from Gulf Cooperation Council (GCC) and other Arab countries are taking part in the event.
