UAE Oil Min Says Oversupply May Last Months or Years


DUBAI, Jan 7 (Reuters) - Oil market oversupply may last months or even years, but prices could recover if non-OPEC producers "act rationally", the United Arab Emirates (UAE) oil minister said in remarks published on Wednesday.

The comment by Suhail bin Mohammed al-Mazrouei in an interview with The National daily echoed recent calls by core Gulf Arab OPEC members such as Saudi Arabia that non-OPEC producers should curb planned increases in output to help prop up sagging prices.

"We are experiencing an obvious oversupply in the market that needs time to be absorbed," he was quoted as saying.

"Depending on the actual production growth from non-OPEC countries, this problem could take months or years. If they act rationally, we can see positive corrections during 2015."

Mazrouei also said the UAE would not panic over low prices and the market would eventually stabilise itself, adding that low prices would not delay the country's plans to boost its output capacity to 3.5 million barrels per day (bpd) by 2017.

"We have dealt with such fluctuation in the past and we will not panic this time. There is a world demand increase on crude oil and especially our crude and we believe the market will stabilise itself eventually," he was quoted as saying.

OPEC's decision in November not to cut its output "was supported by all members including the UAE and we are confident on the strategic nature of such a decision," he said. "OPEC was not part of the oversupply and shall not be blamed if other non- OPEC countries oversupply the market."

(Reporting by William Maclean; Editing by Michael Perry and Joseph Radford)

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
robert janvrin | Jan. 8, 2015
I believe Suhail bin Mohammed al-Mazrouei is perfectly justified in his comments. OPEC is tired of being expected to ride to the rescue at their expense. From another point of view its just good business, the epitome of capitalism.


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Accounting Manager
Expertise: Accounting
Location: Houston, TX
Executive Assistant
Expertise: Executive|Secretarial or Administrative
Location: United States
Senior Accountant
Expertise: Accounting|Financial Analyst|Financial Audit
Location: Houston, TX
search for more jobs

Brent Crude Oil : $51.38/BBL 2.44%
Light Crude Oil : $50.43/BBL 2.26%
Natural Gas : $3.14/MMBtu 0.94%
Updated in last 24 hours