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Wed 26 Nov 2014 04:42 PM

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UAE minister says no need to panic after oil price slump

Oil minister Mohammed al-Mazroui agrees with Saudi Arabia that the market will 'fix itself ultimately'

UAE minister says no need to panic after oil price slump
oil, energy, GCC oil, GCC energy, Middle East energy, Middle East oil

Core Gulf oil producer United Arab Emirates sided with OPEC leader Saudi Arabia on Wednesday by saying the group should not panic as oil prices would soon stabilise, while ramping up pressure on non-OPEC producers to help balance global supply.

"We are not going to panic, this is not the first time, this is not a crisis that requires us to panic ... we have seen (prices) way lower," UAE Oil Minister Suhail bin Mohammed al-Mazroui told Reuters.

"The market will fix itself ultimately," he said in an interview, adding that the price drop could not last long.

OPEC leader Saudi Arabia signalled on Wednesday it was unlikely to push for a major change in oil output at the producer group's meeting this week, a day after Russia refused to cooperate in any production cut.

Mazroui said OPEC would look at all options when it meets on Thursday: "We are not interested in the short fixes because we know they will not last."

"OPEC should not in my view be the only one who is fixing this problem - OPEC did not make the oversupply," he added.

"The oversupply came from the evolution of the unconventional oil production ... I think everyone needs to play a role in balancing the market, not OPEC unilaterally."

He said OPEC would not target any price levels, whatever decision it takes on Thursday.

"I think that question of 'What is the good price?' is not anymore a question for OPEC, that is a question to them (non-OPEC)."

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