Opec+ is not “limited to anything” when it comes to balancing oil markets, the UAE energy minister said ahead of a joint technical meeting of producers in Abu Dhabi.
"We don’t take decisions based on feelings. There are other concerns that are outside the supply and demand affecting us,” Suhail Al Mazrouei told reporters.
"I don’t think we’re limited to anything. Anything that the group sees as balancing the market, we’ll go and do. We won’t jump to cuts just on the basis of trade tensions,” he added.
Opec+, the alliance led by Saudi Arabia and Russia will meet in Abu Dhabi on Thursday to review compliance with a pact to cut 1.2 million barrels per day of production. The agreement which has been in place since January is expected to hold until March.
Brent closed at $61.54 per barrel on Friday, continuing a surge that improved on positive economic data and hopes of the US-China trade war easing on the possibility of talks. The two biggest economies have been sparring over trade, escalating already fragile relations by slapping tit-for-tat tariffs in August.
Mr Al Mazrouei said oil markets were being roiled by trade tensions, which he cited as the biggest external factor affecting the industry.
"All markets are suffering from the tension between the US and China. We’re hopeful that there’s some good news on the tension,” he said.
The UAE, the Opec’s third-largest producer, exceeded its quota for cuts by 100 per cent, the minister added. The latest figures for compliance will be released at the technical meeting, he said.
The UAE produced around 3 million bpd in July, according to secondary sources cited by Opec.
