UAE sees latest production cuts as sufficient to balance oil market - RTP pipeline maker excerpts from oilprice.com

United Arab Emirates (UAE) Energy Minister Suhail Mazrui said Wednesday that the latest crude production and export cuts announced earlier this week by OPEC+ de facto leader Saudi Arabia and the capacity powerhouse should be enough to bring the oil market back into balance, Oilprice.com reported on July 5, 2023.

"It's enough to assess the market and watch the market balance." Mazrui told media reporters on July 5 as such.

The UAE energy minister added, however, that the UAE, one of OPEC's major oil producers, will not make any new production cuts.

On July 3, Saudi Arabia and the capacity powerhouse announced new global crude supply cuts almost simultaneously.

Saudi Arabia said it would extend its agreement to unilaterally cut crude output by 1 million barrels per day until August. After extending the voluntary production cut agreement through August, Saudi Arabia's crude oil production will fall to about 9 million barrels per day in July and August.

Saudi Arabia said, "This additional voluntary production cut is intended to reinforce the preventive efforts of OPEC members aimed at supporting the stability and balance of the oil market."

The production powerhouse said the reduction in crude oil exports in August means the country's crude oil production will fall by another 500,000 barrels per day in August.

At an OPEC international seminar in Vienna on July 5, Saudi Arabia's Energy Minister Salman said the OPEC+ alliance would take "all necessary measures" to support the oil market.

Salman added that statements this week by Saudi Arabia and the production powerhouse show that cooperation between the two OPEC+ de facto leaders remains strong.

Salman said, "Part of what we did (Monday), with the help of our colleagues, was also to soften the cynical side of bystanders about what is happening to us on this specific issue."