UAE Minister of Energy Suhail Al Mazrouei said he expects supply levels on world markets to “stabilise”, easing pressure on crumbling prices.
“The market will oblige all (producers) not to reduce but to stabilise their output levels,” Mr Al Mazrouei told Sky News Arabia.
He expected world demand for crude to rise this year by 1.3 million barrels per day (bpd) and also said it was “possible” that supplies from non-Opec producers fall by 500,000 bpd.
Producers could fall short of the 1.8 million bpd gap because “several countries have suspended investments” needed to boost output capacity, he said.
Mr Al Mazrouei said he was “optimistic over a return of stability” on the market, without specifying what action the Opec cartel or its members would take.
Oil surged Friday on world markets, following a report in the Wall Street Journal quoting Mr Al Mazrouei as saying Opec was willing to cooperate with other producers on trimming the global crude supply glut.
West Texas Intermediate oil for March delivery rose $3.23 to settle at $29.44 a barrel at on the New York Mercantile Exchange. It’s the biggest increase since February 2009.
Brent for April settlement gained $3.17, or 11 per cent, to $33.23 a barrel on the London-based ICE Futures Europe exchange.
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