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UAE Minister of Petroleum: OPEC will not repeat last year's mistake



OPEC and its allies in the production-cut agreement are obliged to balance the market and will not repeat last year's preemptive production boost to offset the expectations of oil supply losses, Suhail Al Mazrouei, the United Arab Emirates Energy Minister (UAE), said Wednesday.

"I think we have learned the lesson. We will do what it takes to balance the market. We will not skip the gun and produce the volumes that are not needed yet," says UAE National, Al Mazrouei, at Bloomberg Invest Abu Dhabi Conference Today

Al Mazrouei was apparently indicated by the decision of OPEC and Russia to reverse the production cuts in the summer of 2018 to secure a well-stocked market in the expectation that the US will drive Iranian oil exports to zero.

For several months, the US had said it was aiming to cut Iran's oil exports, and the oil market began to fear in the summer of 201

8 that a steep decline in Iranian oil containers would tighten the global market too much, OPEC and Russia moved in to compensate for what was expected to be a significant loss of Iranian oil supply.

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But then the United States gave dispensations In Iran's largest oil customers, including China and India, and OPEC and its Russian-led allies forged in December with a new production agreement to reverse the new gluten that had begun to build in Q4 2018 after OPEC had anticipated errors. 19659002] "I think we were slightly abducted with the fact that we assumed that these volumes were required in November," said Al Mazrouei, suggesting that this time, the OPEC-Russia alliance will not be fooled by pre-producing more oil when it is not immediately required by the market.

Last month, OPEC + Allies interrupted a scheduled extraordinary meeting in mid-April, and decided to leave the cuts for a meeting in late June instead. Earlier this year, OPEC officials began to signal that mid-April would have been too early to assess the real impact of the sanctions on Venezuela and the US policy on deviation of Iranian oil customers after the current deviations expire in early May. 19659002] At the June meeting, OPEC and partners will get a clearer picture of where the supply can go, because the United States has already decided to expand and to extend exemptions for Iranian oil purchases.

By Tsvetana Paraskova for Oilprice.com

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