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UAE, Saudi Arabia, Oman Agree on Further Oil Output Cut
The United Arab Emirates (UAE), Saudi Arabia and Oman reached an agreement in principle here Saturday on further cut of oil production.
The deal was unveiled at a joint news briefing by UAE Minister of Petroleum and Mineral Resources Obeid bin Saif Al Nasiri and his Saudi and Omani counterparts, following a tripartite consultative meeting.
Nasir said that the UAE supports the reduction of world oil output and that the three gulf countries are still evaluating quantities to be cut.
More consultations and contacts would be conducted among the oil exporters from inside and outside the Organization of Petroleum Exporting Countries (OPEC) to set appropriate steps, he added.
"We are trying to cut oil production in cooperation with other producers from outside the OPEC," Nasir told reporters.
For his part, Saudi Minister of Petroleum and Mineral Resources Ali bin Ibrahim al-N'aimi said the decision on the cut will be taken in light of the global economic situation.
The issue will be discussed at a meeting by experts from inside and outside the OPEC in Vienna on Monday, he said.
The Saudi minister also disclosed that he would visit Russia ahead of an OPEC ministerial meeting slated for November 14 as part of contacts with all main producers from outside the OPEC.
Non-OPEC producers have shown willingness to cooperate with the organization, he said.
Meanwhile, the minister denied any change in the OPEC oil price, which now ranges from 22 to 28 U.S. dollars per barrel. The average price target will stand at 25 dollars per barrel, according to the Saudi minister.
Omani Minister of Petroleum and Natural Gas Mohammed bin Hamad bin Saif al-Ramhi said that a daily reduction of 1 million barrels will be enough to stabilize the oil market and maintain prices acceptable to all producers.
Since the September 11 terror attacks on the U.S., international oil prices have dwindled away 22 percent, with OPEC oil prices sometimes dropping at 19 U.S. dollars per barrel.
OPEC members and other oil producers have already cut output to check the deterioration of oil prices since the beginning of the year.
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