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Oil producers to draft long-term alliance deal by end-2018 - UAE minister

Reuters  |  DUBAI 

(Reuters) - Oil producers led by and aim to draft an agreement on a long-term alliance by the end of this year, minister told the local National newspaper on Thursday.

The newspaper also quoted him as saying OPEC was urging its members to build to temper any wild upswings in price due to the weak U.S. dollar this year.

OPEC and non-OPEC producers are restraining production to prop up prices under a deal that is to expire at the end of 2018. said last month that the producers aimed to continue cooperating beyond the end of this year.

The charter for this long-term alliance is a work in progress but a draft framework might be endorsed and signed by all 24 countries before the end of the year, Mazroui said in the interview, without elaborating on what the framework would look like.

Mazroui, of OPEC, also said the organisation was incentivising all its members to have capacity buffers.

"That buffer is (to ensure) that if you have a surge (in demand) or issue in one of the countries you can replace that in the market and achieve a short and medium-term re-balance of the market," he said.

(Reporting by Andrew Torchia; Editing by and David Holmes)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 15 2018. 23:00 IST