Russia and Arabia must create alliance until the end of 2018

The oil producers led by Saudi Arabia and Russia seek to draw up an agreement for a long-term alliance by the end of this year, said the United Arab Emirates energy minister, Hail al-Mazroui, to a local newspaper this Thursday.

The journal also published statements from the authority saying that OPEC was encouraging its members to manage the oil production capacity to mitigate any strong increase in price due to the weak US dollar this year.

OPEC members and their allies are restricting production to support prices under an agreement that expires at the end of 2018. Saudi Arabia said last month that the producers wanted to continue cooperating beyond the end of this year.

A document for this long-term alliance is a work in progress, but a preliminary framework can be endorsed and signed by all 24 countries before the end of the year, said Mazroui in the interview, without drawing up the aspect of the picture.

Mazroui, president of OPEC, also said that the organization was encouraging all its members to manage the capacity.

"This damper is (to ensure) that if you have an increase (in demand) or problem in one of the countries, you can replace it in the market and achieve a short-and medium-term balance of the market," he said. Source.


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