Let market stabilise oil price, not low-cost producers, says Minister of Energy | The National

Let market stabilise oil price, not low-cost producers, says Minister of Energy | The National:

"Producers of low-cost oil, such as many Opec members, should not play the role of swing producers and instead allow the market to stabilise itself, the UAE’s Minister of Energy said yesterday.

“Low oil producers should be at the base,” said Suhail Al Mazrouei. “It was a mistake in the past that they were a swing producer. The fact we have more competition in the market means we need to do something to correct that behaviour. That correction was the decision that the members of Opec took, which is we will be base producers because that is to the benefit of the customers and that’s to the benefit of the sustainability of the market.”

Opec, which pumps about 40 per cent of the world’s oil, made a historic decision in November last year to not cut its output to protect its market share rather than prop up prices."



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