The global oil sector will be ripe for more price corrections by the month-end following the Opec- non-Opec deal in December to cut their combined oil output by 1.2 million barrels per day, said
Suhail bin Mohammed Faraj Faris Al Mazrouei, the UAE Minister of Energy and Industry.
The current market conditions are better than those two years ago, stated Al Mazrouei while speaking to the Emirates News Agency (WAM) on the sidelines of the Global Energy Forum which opened earlier today in Abu Dhabi.
Al Mazrouei also said he did not expect Opec members Venezuela, Libya or Iran, who effectively have exemptions from the cuts, to increase their oil output in 2019, rather it was more likely their production would decline.
He pointed out that there was no need for Opec and its allies to meet before April when they are likely to decide their output policy for the rest of the year.
The 1.2 million bpd cut should be enough to balance the market, Mazrouei said, adding that he expected the correction to begin this month and to be achieved in the first half of the year.