UAE, Kuwait Cut Output to Back Saudi Efforts to Rebalance Oil Market

UAE, Kuwait Cut Output to Back Saudi Efforts to Rebalance Oil Market

UAE Minister of Energy and Industry Suhail al-Mazrouei announced the country will voluntarily cut its oil output by 100,000 bpd in June. This was in a bid to back Saudi Arabia’s efforts to rebalance the global oil market.

”While the UAE successfully achieved production of over 4 million bpd in early April. It has subsequently reduced its production in line with the OPEC+ agreement,” he said.

In April, the minister stated that a joint and combined effort by all oil producing countries is required; not only by the group of OPEC+ countries. This is in order to address the weakness of demand in the global oil market.

The UAE government appreciates the positive and pivotal role played by Saudi Arabia. Besides, its great efforts to achieve balance in global markets, he said at the time. “We note the important role of Saudi Arabia in the OPEC+ agreement, and that the Kingdom incurred a reduction rate greater than its share.”

The minister added: “The UAE also appreciates the important role played by countries outside OPEC, especially Russia, for their constructive cooperation to achieve balance in global markets.

The UAE is confident that all producing countries will work to address the weak demand for oil in global markets; helping to rebalance the market and maintain global oil inventories at reasonable levels.”

Kuwaiti Oil Minister Khaled al-Fadhel said the country will slash production by 80,000 bpd in June; on top of the cuts already agreed under a pact by the OPEC+.

Fadhel applauded the existing coordination between Kuwait and Saudi Arabia.