The United Arab Emirates (UAE) has reaffirmed its commitment to the Organization of Petroleum Countries and its allies (OPEC+) output deal despite rising domestic needs, according to S&P Global.
Suhail Mazrouei, the UAE’s Energy Minister, said, “The UAE is committed to fulfil its obligations toward that [OPEC+] deal… for example, in August when we had to increase a little bit, we compensated the very next month. The UAE reduced its production in a month of need, I would say, when electricity and the gas required for electricity are still in demand.”
The UAE cut its September output by 8% to 2.476 mmbbl/d, achieving 116% compliance with its OPEC+ quota, as the country compensated for overproduction in August (103,000 bbl/d over the allotted quota).
Similarly, Algeria’s energy minister Abd Al-Majeed Atar also stressed the importance of continuing cooperation between the producing nations to preserve balance in the oil market.
Talking on the matter, Atar said: “ This alliance is still necessary and must continue if we want to avoid entering into a stage of complete absence, especially in the short-term.” The Energy Minister also warned that “without the OPEC+ alliance we would be facing a totally unbalanced market and maybe in an even worse state than the current level.”