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OPEC to consider several scenarios for reducing oil output

10 May 2017 [17:43] - TODAY.AZ

By Azernews


By Sara Israfilbayova

OPEC will consider several options for the future of the agreement on reducing oil production at a meeting in Vienna on May 25, said Suhail Al Mazrouei, the UAE Energy Minister.

“Ministers will be presented several options, from which they will choose the best. I am optimistic about the next meeting,” said Al Mazrouei, noting that the UAE is ready to support the extension of the Vienna agreement, Ria Novosti reported.

The Minister stressed that the increase in oil production in the U.S. is not a significant threat for the possible prolongation of the Vienna agreement.

Saudi Arabia’s oil minister earlier said he’s confident that an agreement by producers to curb crude output and shrink a market glut will be extended into the second half of the year and possibly beyond.

While U.S. shale output growth and the shutdown of refineries for maintenance have slowed the impact of cuts by OPEC and its partners, producers are determined to reach their goal of reducing bloated stockpiles, Khalid Al-Falih said at the Asia Oil and Gas Conference in Kuala Lumpur on May 8.

He said he’s confident the global oil market will soon rebalance and return to a “healthy state.”

In December 2016, OPEC and non-OPEC producers reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.

Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from Jan. 1, 2017 for six months, extendable for another six months.

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