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

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.


BT warns UK that banning Huawei too fast could cause outages

Updated 59 min 32 sec ago

BT warns UK that banning Huawei too fast could cause outages

  • Prime Minister Boris Johnson is due to decide this week whether to impose tougher restrictions on Huawei
  • British PM in January granted Huawei a limited role in the 5G network

LONDON: BT CEO Philip Jansen urged the British government on Monday not to move too fast to ban China’s Huawei from the 5G network, cautioning that there could be outages and even security issues if it did.
Prime Minister Boris Johnson is due to decide this week whether to impose tougher restrictions on Huawei, after intense pressure from the United States to ban the Chinese telecoms behemoth from Western 5G networks.
Johnson in January defied President Donald Trump and granted Huawei a limited role in the 5G network, but the perception that China did not tell the whole truth over the coronavirus crisis and a row over Hong Kong has changed the mood in London.
“If you are to try not to have Huawei at all, ideally we would want seven years and we could probably do it in five,” Jansen told BBC radio.
Asked what the risks would be if telecoms operators were told to do it in less than five years, Jansen said: “We need to make sure that any change of direction does not lead to more risk in the short term.”
“If we get to a situation where things need to go very, very fast, then you are into a situation where potentially service for 24 million BT Group mobile customers is put into question — outages,” he said.
In what some have compared to the Cold War antagonism with the Soviet Union, the United States is worried that 5G dominance is a milestone toward Chinese technological supremacy that could define the geopolitics of the 21st century.
The United States says Huawei is an agent of the Chinese Communist State and cannot be trusted.
Huawei, the world’s biggest producer of telecoms equipment, has said the United States wants to frustrate its growth because no US company could offer the same range of technology at a competitive price.