UAE prepared to manage production to protect oil prices

24 September 2014

Energy ministry official says UAE will act responsibly as crude prices hit long-term lows

A UAE Energy Ministry official says the Gulf country is prepared to limit oil production to maintain prices after the global crude market hit long-term lows in mid-September.

Brent crude prices closed below $97 a barrel on 22 September having dipped from a peak of $115 in June. The decrease, which has been partly driven by disappointing economic indicators on Chinese growth, has led to speculation about a reduction in Opec production.

“The UAE is a responsible country,” said the UAE Energy Ministry undersecretary Matar al-Neyadi, speaking at the Energy Markets Forum in Fujairah on 23 September. “We are prepared to manage production in a way that ensures a fair oil price for producing and consuming countries.”

The crude price dropped sharply last week amid concerns about oversupply.

On 10 September Opec’s monthly report predicted that demand for its oil will drop in 2015 falling to 29.2 million barrels a day, down from 29.5 million this year.

Speaking on 16 September Opec general-secretary Abdalla el-Badri said that the exporters group could reduce production by 500,000 barrels a day in 2015 in an effort to support prices.

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