DUBAI: The United Arab Emirates energy minister said on Wednesday OPEC and its allies will need to reduce oil production next year to prevent a build up in supply and there is consensus building among its members to support a decision to balance the market. "We have seen the risk of an increase in inventories if we didn't do anything and we will not allow that to happen," Suhail al-Mazrouei, who holds the OPEC presidency in 2018, told Reuters.

"Obviously there will be a requirement to move from increasing production to reducing production."

Mazrouei also said the UAE would support any OPEC decision to balance the market in December.

The minister was talking as oil markets fell again on Wednesday, extending losses from a 7 percent plunge the previous session as surging supply and the spectre of faltering demand scared off investors.

Russian energy minister Alexander Novak on Wednesday said no emergency action was warranted to stem the decline in oil prices.

Saudi Energy Minister Khalid al-Falih on Monday said OPEC and its allies agree that technical analysis shows a need to cut oil supply next year by around 1 million barrels per day (bpd) from October levels to balance the market.

"The consensus is that we need to do whatever it takes to balance the market," he said.

(Reporting by Rania El Gamal, Writing by Maha El Dahan, Editing by Louise Heavens and Alexandra Hudson) ((asma.alsharif@thomsonreuters.com; +20225783290; Reuters Messaging: asma.alsharif.reuters.com@reuters.net))