Oil output cut deal courageous: Al Mazrouei

Opec+ alliance agreement to extend production cut to the end of July is "a courageous decision" that reflects a collective determination to maintain a balance in the oil market, Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Industry, said.
"The videoconference meeting was held in an atmosphere of cooperation and a collective determination to maintain a balance in the oil market," Al Mazrouei wrote on Twitter.
"The UAE is proud of its supportive role to the alliance of oil producing countries that made a courageous decision and a collective effort that deserves praise from all participating producing countries," the minister said after the crucial decision taken at a video conference of Opec+ ministers on Saturday.
The group also demanded countries such as Nigeria and Iraq, which exceeded production quotas in May and June, compensate with extra cuts in July to September.
Under the terms of the April agreement that helped crude prices double in the past two months Opec+ alliance pledged to cut output by 9.7 million barrels per day or 10 per cent of global crude supplies from May 1 until the end of June.
The cuts were then to be gradually eased from July, to 7.7 million bpd until December.
Algerian Oil Minister Mohamed Arkab, who currently holds OPEC's rotating presidency, said the agreed cut for July was 9.6 mbpd, just slightly below the 9.7 mbpd for May and June.
The UAE minister thanked chairmanship of Prince Abdul Aziz Bin Salman, Saudi Arabia's Minister of Energy, and co-Chair Alexander Novak, Minister of Energy of the Russian Federation for the efforts made to reach the agreement.
Mexico's Energy Minister Rocio Nahle said his country would not join other top oil producers in extending through July output cuts aimed at propping up the price of crude.
"There are other countries that extended their cuts to July, in this case we said no, we'll stick to the agreement that we signed in April," she said.
Oil provides a fifth of Mexico's export earnings and its state-owned petroleum firm Pemex is in serious trouble, posting a net loss of $23.5 billion in the first quarter.
Mexico's unwillingness to go as far as other Opec+ countries in making output cuts caused friction with Saudi Arabia in April. Agreement was reached after Mexico said the United States would help make up the difference.
issacjohn@khaleejtimes.com