UAE reiterates support for Opec+ output agreement

The country said it is a 'committed member to Opec'

Suhail Al Mazrouei, UAE's minister of energy, said the country is a "committed member" of Opec. Victor Besa/The National

The UAE reiterated its commitment to the Opec+ alliance, which has been undertaking production cuts to regulate the market ahead of the group’s annual meeting.

"The UAE has always been a committed member to Opec and we have demonstrated this commitment through our compliance to the current Opec+ agreement," UAE energy minister Suhail Al Mazrouei said in a statement to The National.

The UAE, which accounts for 4.2 per cent of global output, according to BP’s Statistical Review of World Energy is the third-largest producer within Opec. Abu Dhabi pledged to make compensatory cuts last month after it produced above its quota over the summer in order to tap into associated gas required for higher power consumption during the peak season.

"As a reliable and long-standing member of Opec, we have always been open and transparent in all our decisions and strategies in support of Opec,” Mr Al Mazrouei said.

The UAE reported 126 per cent compliance with the Opec+ agreement in October and lowered its crude output for the month by 153,000 barrels per day in line with the current level of curbs.

Opec+, the alliance led by Saudi Arabia and Russia, is drawing back 7 million bpd since August and was set to taper the cuts from the beginning of 2021, as part of an agreement reached earlier this year.

However, a rising number of Covid-19 cases and subsequent reimposition of lockdowns in several parts of the world have raised concerns about the demand for crude.

Opec+ is likely to rollover the current level of restrictions, reversing an earlier course to incrementally increase production by the beginning of the year. The group will convene online for their annual meeting on December 1. The next joint technical and monitoring committee meetings of the alliance are scheduled for December 16 and 17, respectively.