Additional oil output and export cuts should be enough to balance market, UAE says

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Saudi Arabia and Russia, the world’s biggest oil exporters, deepened oil supply cuts on Monday in an effort to send prices higher

Additional oil output and export cuts made by Saudi Arabia and Russia earlier this week should be enough to help balance the oil market, United Arab Emirates’ energy minister Suhail Al Mazrouei told reporters on Wednesday.

OPEC+, a group comprising the Organization of the Petroleum Exporting Countries and allies including Russia which pumps around 40 per cent of the world’s crude, has been cutting oil output since November in the face of flagging prices.in an effort to send prices higher. Yet the move only briefly lifted the market. On Wednesday, benchmark Brent futures traded more than 1 per cent down at $75.30 per barrel, lower than the $80-$100 per barrel than most OPEC nations need to balance their budgets.

“This is enough to assess the market and look at the market balance,” Mazrouei told reporters, adding that the UAE would not be contributing to fresh cuts.

 

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