The Opec production reduction agreement that is due to expire at the end of June “is working, but needs more time”, UAE Energy Minister Suhail al-Mazroui told reporters on the sidelines of the EIC Connect Oil & Gas conference on 23 May.

Al-Mazroui was speaking two days before the start of an Opec ministerial meeting in Vienna, which is due to review the results of the agreement and is expected to approve an extension.

The energy minister said the extension could be for six months or nine, but that depends upon the decision of the Opec meeting.

He said, however, that any agreement about an extension of the production cut agreement will have to be unanimous.

Iraq’s Oil Minister Jabar Ali al-Luaibi said on 22 May that he supports a joint proposal from Saudi Arabia and Russia for a nine-month extension of the deal. He was speaking at a press conference in Baghdad with Saudi Energy Minister Khalid al-Falih.

This lifted expectations that Opec would reach an agreement in Vienna.

Al-Mazroui said the UAE supports an extension of the production cuts, but did not specify the length of time it should apply to.

He said the criteria he used for evaluating the effectiveness of the production cuts, which went into effect on 1 January, were evidence that surplus stocks were being eliminated from the market and signs of a recovery in oil and gas industry investment.

Al-Mazroui said both criteria indicated the agreement was working.

In November 2016, Opec agreed to reduce oil production from 1 January by 1.16 million barrels a day (b/d) to 31.88 million b/d. This paved the way for an agreement announced on 10 December for 10 non-Opec states including Russia to cut oil production by 558,000 b/d from the same date, bringing the total planned cuts in supplies to 1.72 million b/d.

“The compliance with the agreements has been unexpectedly high,” said Eithne Treanor, chairperson for the EIC Connect Oil & Gas 2017 conference.