Potential for oil output cut extension: UAE Minister of Energy and Industry

Suhail Al Mazrouei, Minister of Energy and Industry, today said that there is potential for extending OPEC’s oil output cut deal next year.

"I don’t think there is anyone who is against the extension. We need market stability and a healthy price as I am not happy with the current price fluctuations between US$40 and $60 within only one year," the minister said in a panel held on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference which opened in the UAE capital today.

"We need a healthy price for all parties concerned, including producers, investors and consumers," added the minister, expressing hope that OPEC would have a consensus on extending the output cut deal next year.

"The whole issue is subject to discussions as it is a very complicated decision to take. But again, we need market stability and investment and that’s why we say there is a potential for an extension."

Al Mazrouei re-affirmed the UAE’s keenness to developing constructive, and long-lasting relationships with different countries around the world.

"In accordance with the vision and aspirations of our wise leadership towards laying down the foundations of fully considered scientific plans aimed at achieving sustainable development and a decent life for citizens and residents alike, we are keen to develop fruitful relations with all our partners towards this aim. Within this context, we have developed very positive investment relations with China, India, Pakistan and Japan, among many other countries.

"However, there are some who want to play with our security and they will not succeed. I’m not here to mention names, but we affirm that we are working with the international community to fight all those who seek to give incentive to terror organisations and militias. I am not an expert in geopolitics but we cannot speak about oil without talking politics. Geopolitics cannot be separated from the oil industry as oil used to be a protector against political tension," the minister added.

The minister emphasised the importance of cutting subsidies. "Subsidies should not continue for long as they urge most of the people in the region to not rationalise consumption and therefore there is an urgent need to cut energy subsidies. We need to consume less for the sake of the coming generations. We need to be rational for the future."

"Through efficiency we can save a lot of gas and make our planet green and clean, and then we conserve gas for the future. With more efficiency, the region can be a gas supply powerhouse for the entire world," he added.

Titled, "Creating Energy Opportunity Through Foresight, Vision Inspiration and Innovation," the panel brought together oil ministers from Oman, Egypt and Pakistan.