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Dec 12 2013

Gulf OPEC states will not act unilaterally to balance market-UAE oil minister

Gulf OPEC states will not act unilaterally to balance market-UAE oil minister Photo Credit:Reuters/Herwig Prammer

Thursday, Dec 12, 2013

By Summer Said

Gulf members of the Organization of the Petroleum Exporting Countries, or OPEC , will not act unilaterally in the future to balance the market, the United Arab Emirates' energy minister said Thursday.

"As a group we are reacting to make sure that the market is well-supplied and we will continue this coordination to make sure that supply is there," Suhail Mohamed Al Mazrouei said on the sidelines of an energy event in Dubai.

"The OPEC decision will be always collective. We cannot do something unilaterally," he said.

OPEC kingpin Saudi Arabia and its Gulf OPEC allies upped production unilaterally in the second half of 2011 in response to OPEC 's failure to agree to a collective output increase to meet the shortfall in supplies from Libya.

Earlier this month, OPEC decided to keep its output ceiling unchanged despite the threat of rising supply that could weigh on prices.

Some OPEC officials have argued that Saudi Arabia, Kuwait and the U.A.E, who together account for more than half of the cartel's output, should rein in their production to make room for a resurgence in Iraqi exports and the possible return of more Iranian crude to world markets if sanctions are eased.

However, Mr. Mazrouei hinted that the group may not need to trim its output next year due to expected growth in the market.

"The good news is that there is growth in the market, even in Europe we expect growth next year. Also we have issues in the area like Syria and some instability in some OPEC countries like Libya and it depends where they are going to be in the next six months," he added.

Write to Summer Said at summer.said@wsj.com

(END) Dow Jones Newswires

12-12-13 1209GMT


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