OPEC is not the enemy of the US: UAE energy minister

UAE Energy Minister Suhail Al-Mazrouei said the average oil price of $70 a barrel in 2019 was backed by a pact between OPEC and non-OPEC oil exporters to cut output. (Reuters)
Updated 13 January 2019
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OPEC is not the enemy of the US: UAE energy minister

  • UAE Energy MInister Suhail Al-Mazrouei expects an average oil price of $70 a barrel in 2019
  • Price is based on an agreement to cut output by OPEC and non-OPEC oil exporters reached last month

ABU DHABI: The Organization of Petroleum Exporting Countries is not the enemy of the US, UAE Minister Suhail Al-Mazrouei said on Saturday in Abu Dhabi.

“We are complementing each other, we are not enemies here,” Al-Mazrouei told an industry conference in Abu Dhabi, addressing the relationship between OPEC and major consuming countries like the US.

OPEC, and other leading global oil producers led by Russia, agreed in December to cut their combined oil output by 1.2 million barrels per day from January in order to balance the oil market.

The decision came despite US. President Donald Trump’s calls to oil exporters to refrain from cutting production, saying it would trigger higher oil prices worldwide.

Al-Mazrouei said the average oil price in 2018 was $70 a barrel. His Omani counterpart Mohammed Al-Rumhi, addressing the same event, said he expected a price of between $60 and $80 a barrel in 2019.

The 1.2 million bpd cut should be enough to balance the market, Al-Mazrouei said, expecting the correction to start this month and to be achieved in the first half of the year.

He said there was no need for major oil exporters to hold an extraordinary meeting before the one planned in April.

“Things are working well,” said Oman’s Rumhi, whose country is taking part in the supply reduction agreement without being a member of OPEC. He also said there was no need for major exporters to meet before April.


UK Treasury chief vows to quit if Boris Johnson becomes PM

Updated 12 min 9 sec ago
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UK Treasury chief vows to quit if Boris Johnson becomes PM

  • Hammond is the third minister within a week to quit or say they will resign in order to try to block a no-deal Brexit
  • Johnson is the strong favorite to win a two-person runoff to lead the Conservative Party and the country

LONDON: British Treasury chief Philip Hammond says he will quit if — as widely expected — Boris Johnson becomes prime minister this week.
Hammond said Sunday that Johnson’s vow to take the UK out of the European Union on Oct. 31 with or without a divorce deal is “not something that I could ever sign up to.”
He is the third minister within a week to quit or say they will resign in order to try to block a no-deal Brexit. Economists say leaving the EU without a deal would cause Britain economic turmoil.
Johnson is the strong favorite to win a two-person runoff to lead the Conservative Party and the country. The winner is being announced Tuesday, with the victor taking over from Prime Minister Theresa May on Wednesday.