ABU DHABI (Reuters) – The United Arab Emirates has kept its pledge to cut oil supplies in line with its OPEC commitments, Oil Minister Mohammed al-Hamli said on Monday.
He said that while the global financial crisis had a big impact on the oil industry it was important for the Middle East to continue investing in the energy sector, even as the Oman oil minister warned that the crisis would lead to project delays.
“We have fulfilled completely our cuts,” Hamli told Reuters at an oil and gas conference in Abu Dhabi.
The Organization of the Petroleum Exporting Countries agreed at an emergency meeting last month to cut output by 1.5 million barrels per day (bpd), or about 5 percent, starting from November, to stop a plunge in oil prices that have more than halved since July and lost 32 percent in October alone.
The Abu Dhabi National Oil Co (ADNOC) notified term customers last week that it would cut its contracted volumes for its main export grades by 5 to 15 percent in December, and cut its Upper Zakum crude by 5 percent starting from November.
Industry sources say Kuwait and Nigeria have also informed customers of immediate supply cuts. But top producer Saudi Arabia has yet to notify its lifters of curbs, raising questions about its resolve to swiftly implement the cuts.
Reflecting the jitters among Gulf oil producing countries faced by falling crude prices and tightening credit, Hamli told the conference:
“The recent events on global financial markets have had a substantial impact on the oil industry. Inspite of the present market conditions, I would stress the importance of the continued investment in the region’s oil and gas industry.”
Oman’s Minister of Oil and Gas Mohammad bin Hamad bin Seif al-Rumhy also told Reuters at the conference that the global financial crisis would have an impact on Oman’s oil and gas developments and may cause delays to projects such as the major Duqm Refining and Petrochemical Complex.