United Arab Emirates Energy Minister Suhail al-Mazroui said on Tuesday that the global supply cut pact has reduced the oil overhang in the market but the job was not over yet.
Speaking at a news conference in London, Mazroui said that there is still an excess of oil held in storage of around 74 million barrels above the five-year average. Oil stocks in developed OECD economies were 340 million barrels above the five-year average in January 2017.
Mazroui, who holds OPEC’s presidency this year, said that the group’s secretariat will be meeting with U.S. shale oil producers during the CERAWeek conference next month “to compare notes”.
The Organization of the Petroleum Exporting Countries is reducing output by about 1.2 million barrels per day as part of a deal with Russia and other non-OPEC producers. The pact started a year ago and will run until the end of 2018.
Mazroui said non-OPEC producer Russia was committed to the supply reduction agreement until the end of the year.
Source: Reuters (Reporting by Rania El Gamal, editing by Louise Heavens)