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Mon 6 Apr 2020 08:35 AM

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UAE supports Saudi call for emergency OPEC+ meeting

OPEC+ meeting has been delayed to April 9 as Riyadh and Moscow trade barbs about who's to blame for the collapse in oil prices

UAE supports Saudi call for emergency OPEC+ meeting

“The UAE is confident that, if an agreement can be reached," said Suhail Al Mazrouei, UAE Minister of Energy and Industry.

The UAE has backed calls by Saudi Arabia for an emergency meeting of OPEC+ countries to stabilise the global oil market.

Last week, leading world crude exporter Saudi Arabia made the surprise call for a meeting of the OPEC+ oil producers.

The move followed a phone call between US President Donald Trump and Saudi Crown Prince and de facto leader Mohammed bin Salman.

Suhail Al Mazrouei, UAE Minister of Energy and Industry, said: “'A joint and combined effort by all oil producing countries is required, not only the group of OPEC+ countries, in order to address the weakness of demand in the global oil market.”

Delayed

The OPEC+ meeting was initially expected for Monday, but got delayed to April 9 as Riyadh and Moscow trade barbs about who’s to blame for the collapse in oil prices.

Riyadh has stressed that it had tried to reach an agreement among OPEC+ members to cut production and "secured the support of 22 countries... but failed to secure consensus".

Saudi Arabia had blamed Russia for refusing to agree to an additional output cut of 1.5 million barrels per day on top of reduction already in place of 1.7 million bpd.

As a result, the kingdom opened its crude oil taps, deciding to raise its production to a record 12.3 percent from April 1. It later said it will export at least 10 million bpd in April, which will be raised to a record high 10.6 million bpd to flood the global markets.

The price war sent prices crashing to 18-year lows, putting a tremendous pressure on US shale oil, which is expensive to produce.

Al Mazrouei added: “The UAE is confident that, if an agreement can be reached, all producing countries will work quickly and cooperatively to address the weak demand for oil in global markets, helping to rebalance the market and maintain global oil inventories at reasonable levels.”

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