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25/09/2017 - 14:05hs

UAE reduces oil exports

According to the Arab country’s minister of Energy, international sales of the commodity were reduced by 10% in the last two months, as part of an OPEC agreement.

Giuseppe Cacace/AFP

Mazroui: new meeting in November

São Paulo – The United Arab Emirates cut its oil exports by 10% in the last two months, under an agreement with the Organisation of the Petroleum Exporting Countries (OPEC), according to information released to the press this Monday (25) by the country’s minister of Energy, Suhail Al Mazroui.

“UAE compliance is 100 per cent and we announce cuts every month. As an extra assurance, we are notifying out customers and markets,” said Al Mazroui in Abu Dhabi, regarding the agreement. The UAE exports nearly 2.7 million oil barrels daily, according to the minister.

In December of last year, the organization and other oil producing countries such as Russia and Mexico signed an agreement to cut global output by 1.8 million barrels per day and eliminate the surplus of the commodity in the market, which had been causing prices to decline. Originally intended to last six months, the agreement was extended until March 2018.

According to minister Mazroui, a new extension should be discussed in an OPEC ministerial meeting in Vienna, Austria, in November. In the meeting, the countries will decide if the agreement will be extended or if other countries will be included. Some members of the OPEC, such as Libya and Nigeria, are not part of the agreement.

Mazroui said that the UAE are in total compliance with the global cut and are expecting improvements in the oil market in this year and the next. The price of the Brent oil reached this Monday its highest price in the last seven months at USD 57.7. On Friday (22), it ended the day at USD 56.8, an increase of near USD 10 over the price in the same period of last year: USD 47.6.

Despite the increase, oil prices are still well below early 2014 prices, which exceeded USD 100 per barrel. The drastic price reduction caused a decline in revenues and budget problems for the producing countries.

*Translated by Sérgio Kakitani

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