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Saudi Energy Minister calls on the UAE for compromise and rationality

In an effort to reach an agreement Monday on the oil output policy, Saudi Energy Minister Prince Abdulaziz bin Salman urged the UAE to "compromise" and act rationally while speaking in an interview with Saudi-owned Al Arabiya television channel on Sunday.

Key quotes

"The extension is the basis and not a secondary issue.” 

"You have to balance addressing the current market situation with maintaining the ability to react to future developments ... if everyone wants to raise production then there has to be an extension.”

"Big efforts were made over the past 14 months that provided fantastic results and it would be a shame not to maintain those achievements. ... Some compromise and some rationality is what will save us.”

"We are looking for a way to balance the interests of producer and consumer countries and for market stability in general, especially when shortages are expected due to the decrease in stockpiles.”

No country should use a single month as a baseline reference, adding there was a mechanism to file objections and that "selectivity is difficult".

This comes after the UAE said Sunday it backs an output increase from August but suggested deferring to another meeting the decision on extending the supply pact, per Reuters.

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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