UAE CUTS OUTPUT

BLOOMBERG - OPEC and allied oil producers should extend their production cuts beyond March to help re-balance the market, the United Arab Emirates said, adding weight to a gathering consensus for longer reductions in output among participants in the global accord.

The U.A.E. favors maintaining the cuts, which are set to expire at the end of the first quarter, Minister of Energy Suhail Al Mazrouei said. The fourth-largest member of the Organization of Petroleum Exporting Countries staked out its position a day after OPEC Secretary-General Mohammad Barkindo said that caps on output are the "only viable option" to restore stability to the market.

"Definitely there's a need for extension," Mazrouei said Tuesday at an energy conference in Abu Dhabi.

Output cuts by OPEC and other producers such as Russia and Oman have started to pay off, with benchmark Brent crude trading close to a two-year high. OPEC will meet in Vienna on Nov. 30 to review the pact on cuts, which took effect in January, and possibly extend it. Russia, Saudi Arabia and Iraq already signaled they would be open to extending the curbs.

Oman, a member of the producer committee monitoring the cuts, wants to prolong them beyond March and sees producers extending them until the end of 2018, Oil Minister Mohammed Al Rumhy told reporters on Monday in Abu Dhabi. The largest Arab oil producer outside OPEC doesn't want to delay a decision to extend the limits and supports a Saudi proposal to prolong them at the producers' meeting this month, he said.

Coordinated Cuts

However, OPEC has yet to convince Russia of the need to reach an agreement at the Vienna meeting to extend their cuts. Russia still believes it's too early to announce anything this month, two people with knowledge of matter said. Another issue is the duration of an extension, with options including an additional three months of cuts being considered.

Mazrouei said on Monday that coordinated cuts by OPEC and suppliers outside the group have helped trim crude inventories from record storage levels. "I am optimistic about the whole of 2018," which will be a "recovery year" for oil markets, he said.

Brent, which has gained 8 percent this year, was trading 68 cents lower at $61.53 a barrel in London at 7:24 a.m. local time.

"We are seeing clear indications that the market is re-balancing at an accelerating pace and stability is steadily returning," OPEC's Barkindo said Monday. "I am certain that if we had not mobilized ourselves when we did, building consensus and jointly taking action in responding to the crisis, the industry would be in worse condition than it is today."

-----

Earlier:

2017, October, 27, 19:25:00 SAUDIS SUPPORTS THE REDUCTION Oil closed at its highest in more than two years in London, nearing $60 a barrel, as Saudi Crown Prince Mohammed bin Salman backed the extension of OPEC output cuts.

2017, October, 25, 12:30:00 OIL PRICES NO OPPORTUNITIES "They [big OPEC and Middle Eastern producers] cannot be too ambitious [on their oil price targets]...there's not much [upside] room for them to hope for," Sadamori said. "Once the oil price goes to certain levels, this will stimulate new drilling and investments in North America," he added.

2017, October, 25, 12:25:00 OPEC COOPERATION Compliance among OPEC and major non-OPEC producers reached 120% in September, its highest level since the output constraint deal was launched in January, the Joint Ministerial Monitoring Committee said.

2017, October, 20, 12:35:00 OPEC AND RUSSIA CUTTING Russia’s readiness to back an extension of the supply cuts agreement between Opec and its allies until the end of 2018 has prompted oil ministers to seek widespread support for the proposal, Opec’s secretary-general said on Thursday.

2017, October, 6, 12:50:00 NEW OIL COALITION As the world's two largest oil producers, Saudi Arabia and Russia have led the 24-country OPEC/non-OPEC coalition in its 1.8 million b/d supply cut, which is scheduled to end in March.

2017, August, 31, 12:25:00 SAUDIS - RUSSIA OIL DEAL Top oil producers Saudi Arabia and Russia are pushing to extend their deal to limit crude oil production for another three months, which would leave the output deal between OPEC and non-OPEC producers in place through the end of June, people familiar with the matter said.

2017, August, 24, 14:20:00 OIL MARKET IS RIGHT As of July 2017, the OPEC and participating non-OPEC producing countries achieved an impressive conformity level of 94 per cent. This is a demonstration of the commitment of participating producing countries to continue their cooperation towards the rebalancing of the market. The JMMC expressed great satisfaction with the results and steady progress made towards full conformity of the production adjustments, and encouraged all participating countries to achieve full conformity, for the benefit of producers and consumers alike. The JMMC also welcomed the participation of the UAE at the recent JTC meeting, where the UAE reiterated its commitment to adhere to its production adjustments for the remaining period of the Declaration of Cooperation.