Suhail Al Mazrouei, the United Arab Emirates energy minister said Tuesday that he is not concerned about the international trade war upsetting the crude oil market as such might not have significant effect on the prices.
The minister who said the trade war could affect the cost of drilling, the cost of completion, also admitted that the global deal to rein in oil output has removed “85 percent of the problem” of oversupply.
In his words, “I’m not that concerned about a trade war getting to the oil market,it may affect the cost of drilling, the cost of completion, but I think overall the effect is going to be minor to the oil prices.”
The minister told a Bloomberg Businessweek Middle East conference in Dubai that the world economy is benefiting from the Organization of Petroleum Exporting Countries oil cuts as OPEC and allied producers are seeking ways to cooperate after the agreement ends.
Participants in the oil-cuts accord plan to meet later this month in Jeddah, Saudi Arabia, to assess their progress toward clearing a glut and re-balancing the market.
Saudi Arabia, Russia, the U.A.E. and other producers agreed in November to extend the deal through this year. Brent crude has gained 1.5 percent in 2018 and was 25 cents higher at $67.89 a barrel at 11:55 a.m. in London.
