The United Arab Emirates (UAE) renewed its commitment to the Organization of Petroleum Exporting Countries (OPEC) agreement on limiting production and said it would boost its own curbs, Bloomberg stated.
The Abu Dhabi National Oil Company’s shipments of Murban, Das, and Upper Zakum crudes will be 10% lower from September, Minister of Energy Suhail Al Mazrouei said in a tweet on July 25th. “The U.A.E. is committed to its share in the OPEC production cut,” he added, as reported by News-Arabia.
The UAE was only capable of executing 54% of its promised 139,000 b/d cut on average, according to the International Energy Agency.
Oil slumped into a bear market in June due to the rising concerns that increasing global supply was affecting the impact of the supply agreement that was signed last year between OPEC and allies including Russia. The group’s commitment to the agreement has been weakening.
The OPEC meeting of oil producers that was held in St. Petersburg, Russia, on July 24th agreed to allow Libya and Nigeria to boost their output but stressed on the need for other producers to follow the agreement.
The move was followed by criticism from the Saudi Minister of Energy and Industry, Khalid Al-Falih. “Some countries continue to lag in their compliance, which is a concern we must address head on,” Al-Falih said after the talks. “The Kingdom won’t act alone to balance the market and other nations should improve their implementation,” he noted.
Furthermore, other nations also failed to meet their promised cuts, including Iraq, that achieved only half of its 210,000 barrel-a-day cut on average in 2017. Meanwhile, Venezuela has achieved just 39%, according to the IEA data. Saudi Arabia went beyond its obligation, increasing its 486,000 barrels-a-day cut by more than a fifth, the data showed.