United Arab Emirates Minister for Energy Suhail al-Mazroui said Monday he expects OPEC and non-OPEC countries to extend global supply cuts at a Nov. 30 meeting in Vienna.
Speaking at the Abu Dhabi International Petroleum Exhibition Conference (ADIPEC), al-Mazroui said: “My prediction is OPEC will continue to do what it takes to rebalance the market,” CNBC reported.
He added while he had not heard any OPEC members discussing the possibility of not extending the deal, the time and duration of an extension was still to be decided, Kallanish Energy learns.
OPEC members are reportedly forming a consensus around extending by nine months their production-cutting deal with other crude exporters, through the end of 2018. That would prolong the agreement among OPEC, Russia and other oil-producing nations to keep 1.8 million barrels a day (MMBPD) off the market.
The exporters reached the deal last December and have already extended the agreement through March 2018.
The price of oil collapsed from roughly $114 a barrel in June 2014, due to weak demand, a strong dollar and booming U.S. shale production. OPEC’s reluctance to cut output was also seen as a major reason behind the fall, CNBC reported.
The oil cartel and friends moved to curb production in late 2016.
At a separate energy industry conference earlier Monday morning, al-Mazroui said the current OPEC-led supply cuts helped to remove nearly 180 MMBbl of crude from storage in less than a year, CNBC reported. He also insisted whatever decision on future policy was taken at the cartel’s upcoming meeting, the UAE would be committed to it.