UAE reiterates call for output cap

Abu Dhabi

ABU DHABI, March 1, 2016 – Energy Minister Suhail bin Mohammed Al Mazrouei has reiterated the need for major producers to reach a consensus on how to balance the world’s oil market. Speaking on Tuesday, Al Mazrouei said it was “necessary to reach an agreement on a production freeze.”

The UAE has been an advocate of capping output since early February. That month, it joined OPEC members Kuwait, Qatar, Saudi Arabia, Venezuela, backed by non-member country Russia, in saying they could keep oil production level.

The idea was of soon dismissed as by Iran, which seeks to regain market shares after the lifting of international sanctions, and called “ridiculous” by Iraq. While Omani Minister of Oil and Gas Mohammed bin Hamad bin Saif Al Rumhy last week said he would like all parties to reach an agreement on an output ceiling, he also noted that Oman would stand with Iran in the latter’s objection to the idea of capping production.

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