{LONGTERMINVESTORS} U.A.E. Says Oil Collapse Will Force All Producers to Cap Volumes

 

U.A.E. Says Oil Collapse Will Force All Producers to Cap Volumes
2016-03-01 09:24:28.311 GMT


By Mahmoud Habboush
     (Bloomberg) -- The oil-price collapse will compel all
producers to freeze output and no early OPEC meeting can take
place without such a move, the United Arab Emirates' energy
minister said.
     "This is the reality," Suhail Al Mazrouei said Tuesday in
Abu Dhabi. "Current prices will force everyone to freeze
production; stubbornness doesn't make sense."
     Saudi Arabia -- the world's largest crude exporter --
Russia, Venezuela and Qatar have proposed that producers cap
production at January levels to bolster prices that have tumbled
almost 70 percent in two years. OPEC member Iran, which is
ramping up output following the removal of sanctions in January,
has said the plan is "ridiculous" and saddles it with
"unrealistic demands."
     Venezuela is among members of the Organization of Petroleum
Exporting Countries to call for a meeting of oil producers this
month, while Saudi Arabian Oil Minister Ali al-Naimi has said he
hopes for such a gathering. The group's next scheduled meeting
is in June.
     Mazrouei said he hasn't received an invitation for an early
meeting and a summit won't be necessary if producers don't agree
in advance to freeze output. That runs counter to Iran's plans
to increase volumes by 1 million barrels a day this year.
     "The idea of bringing a lot of production in a short period
is not practical," Mazrouei said.
 

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