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UAE energy minister says not concerned with current oil price

Reuters  |  ABU DHABI 

(Reuters) - United Arab (UAE) said on Thursday he was not concerned with the current price.

"We are not panicking or see any need to do anything," Mazrouei said at an event in the capital

He said there was an oversupply of around 100 million barrels in the market, adding that the market still needed to reduce inventories to their five-year average.

In a bid to support prices, member countries and other producers in January 2017 began output cuts aimed at lowering the level of inventories in industrialised countries to their five-year average.

this year have rallied to their highest level since May 2015 and some in fear the gains could prompt U.S. shale companies to raise output, hampering efforts to support and reduce inventories.

On Thursday, Mazrouei said would continue monitoring supply growth in the and that in order to meet demand growth, the market needed shale supply.

Mazrouei, current president of group OPEC, earlier said that he expected the market to balance in 2018 and that was committed to continuing with its supply cut pact until the end of the year.

He also said he was not worried about a supply shock due to crude output declines in and political unrest in

"We are not worried we will have a big shock...we can help each other," he said.

Under the pact between most members and others including Russia, producers have agreed to reduce output by some 1.8 million barrels per day until the end of 2018.

(Reporting by and Stanley Carvalho; editing by Jason Neely)

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

First Published: Thu, January 11 2018. 18:00 IST