DUBAI: The UAE has thrown its support behind a plan by major oil producers to freeze output levels in an attempt to halt a slide in crude prices that has pushed them to their lowest point in more than a decade.
Russia, Saudi Arabia, Qatar and Venezuela announced their willingness to cap output at last month’s levels at a surprise meeting in Qatar this week — but only if other major oil producers join them. OPEC member Kuwait has since said it supports the proposal, and Iran has offered at least tentative backing.
The support from the UAE does not come as a major surprise but is still significant. The seven-state federation is OPEC’s third-largest oil producer.
Energy Minister Suhail Mohammed Al-Mazrouei said in a statement to state news agency WAM that the Emirates supports any proposal to freeze output through consensus with OPEC and Russia, which is not part of the oil-producing bloc.
“We believe that freezing production levels by members of OPEC and Russia will have a positive impact on balancing future demand based on the current oversupply,” he said.
He was also quoted as saying he believes current conditions will prompt producing countries to cap existing output, if not cut supply.
UAE backs crude output freeze plan
