UAE: Oil Producers Will Cap Volumes

UAE: Oil Producers  Will Cap VolumesUAE: Oil Producers  Will Cap Volumes

The oil price collapse will compel all producers to freeze output and no early OPEC meeting can take place without such a move, the UAE’s energy minister said. “This is the reality," Suhail Al Mazrouei said on Tuesday in Abu Dhabi. "Current prices will force everyone to freeze production; stubbornness does not make sense," Reuters reported. Saudi Arabia—the world’s largest crude exporter—Russia, Venezuela and Qatar have proposed that producers cap production at January levels to bolster prices that have tumbled almost 70% in two years. OPEC member Iran, which is ramping up output following the removal of sanctions in January, has said the plan is “ridiculous” and saddles it with “unrealistic demands”. Venezuela is among members of the Organization of Petroleum Exporting Countries to call for a meeting of oil producers this month, while Saudi Arabian Oil Minister Ali al-Naimi has said he hopes for such a gathering. The group’s next scheduled meeting is in June.