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.


Saudi Arabia, China sign $28 billion worth of economic accords

Updated 22 February 2019
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Saudi Arabia, China sign $28 billion worth of economic accords

  • A total 35 agreements had been signed at a joint investment forum held by Saudi Arabia’s investment agency SAGIA

DUBAI: Saudi Arabia and China signed economic cooperation agreements worth a total of $28 billion at a joint investment forum during a visit by Saudi Crown Prince Mohammed bin Salman to Beijing, Saudi state news agency SPA said on Friday.
It said 35 agreements had been signed at the forum, held by Saudi Arabia’s investment agency SAGIA. It also said four licenses for Chinese companies had been awarded at the forum.

The forum, which coincided with the official visit of Crown Prince Mohammed bin Salman China as part of his Asian tour, aimed at enhancing opportunities for joint cooperation between the two countries in various fields.

Other cooperation agreements signed during the forum included areas of the Kingdom's target sectors such as renewable energy aimed at activating cooperation and consultation frameworks in the field of investment development in wind turbines by manufacturing Electric control devices, wind turbine structures, turbine blades and wind generators with an investment of $ 18 million.

The agreement aims to open up to 800 new job opportunities in one of the most targeted sectors of sustainable development.