Oil rallied as UAE backs output freeze

Oil rallied as UAE backs output freeze

Monday, September 26, 2016 2:39 pm

Barkindo: OPEC Sec. Gen

Barkindo: OPEC Sec. Gen

The United Arab Emirates (UAE) would support a global oil freeze initiative to help support markets, its oil Minister, Suhail bin Mohammed al-Mazroui, said on Monday, ahead of a meeting of oil producers and consumers in Algeria.

The minister said in Algiers that “if all OPEC members are in agreement around a decision, I think there is high likelihood of getting support of others, especially Russia.

“For us in the UAE, we are for a decision. We think a freeze will help if it is agreed. We hope that all are going to agree.”

Members of the Organisation of the Petroleum Exporting Countries (OPEC) are informally meeting on the sidelines of the International Energy Forum in Algeria from Sept. 26 to Sept. 28.

The OPEC members are expected to discuss a possible deal to limit output.

Due to a possible output freeze, oil rallied on Monday, putting an end to a nervous trade driving volatility to its highest since exporters met in April.

Brent crude futures LCOc1 rose 73 cents to 46.62 dollars a barrel in early trading, having rallied from a session low of 45.74 dollars, while U.S. crude rose to 45.02 dollars a barrel. (Reuters/NAN)

Meanwhile, Russian Energy Minister Alexander Novak said that his department has not received any proposals to reduce oil production from the Organisation of Petroleum Exporting Countries (OPEC).

“Nobody offered us such proposals,’’ Novak was quoted as telling newsmen in Algeria, adding that at the moment they were only talking about “freezing’’ the level of oil production.

Novak also noted that an agreement on “freezing” oil production is not “critically” important for Russia.

He said that the re-balancing of the oil market would occur in the second half of this year, regardless of the agreement on stabilisation of oil production.

Meanwhile, OPEC Secretary-General Mohammed Barkindo said recently that the Algiers meeting would try to reach a consensus to freeze outputs for at least one year.

“The OPEC members pump up 33.4 million barrels per day, which is a very high level that would never help push prices to hike,’’ Algerian Energy Minister Noureddine Bouterfa said. (Xinhua/NAN)




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