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UAE expects oil market to balance in first quarter

AFP  |  Dubai 

The minister of the said Monday supply and demand in the market should balance out in the first quarter of 2019, following weeks of output cuts.

"My expectation is that we will see the balance during the first quarter unless something happens," told the three-day World Government Summit in

"We are removing enough to correct the market," Mazrouei said.

cartel and other major producers in January began implementing a deal to cut output by 1.2 million barrels per day to shore up sagging prices.

Based on provisional figures of production levels in January, most oil producing nations were complying to the cuts, Mazrouei said.

The oil market, however, remains highly volatile and prices hover just above USD 60 a barrel after recovering from as low as USD 50 a barrel.

That figure remains far below the USD 85 a in early October before beginning to slide.

Mazrouei said producers were "doing our best" to stabilise the market.

Khalid al-Falih, minister of the world's top supplier Saudi Arabia, said in mid-January he expected the to rebalance within weeks.

crashed in mid-2014 to below USD 30 a barrel, down from over USD 100 a barrel, due to a glut in supplies and weakening global demand.

That prompted the Organisation of Petroleum Exporting to cooperate with non-producers, mainly Russia, to trim output by 1.8 million barrels per day from the start of 2017.

The cut helped prices to rebound but they dived again after the producers abandoned the production cuts in mid-2018.

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

First Published: Mon, February 11 2019. 19:25 IST
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