UAE oil minister: OPEC not targeting a certain oil price

Luke MacGregor  Bloomberg
       
        Saudis Kuwait U.A.E. have enough spare capacity Mazrouei.
 Trump plans for Iran sanctions may hurt country's oil output

Luke MacGregor Bloomberg Saudis Kuwait U.A.E. have enough spare capacity Mazrouei. Trump plans for Iran sanctions may hurt country's oil output

OPEC has enough spare production capacity to cushion oil markets if the U.S.re-imposes sanctions on Iran, according to United Arab Emirates Energy Minister Suhail Al Mazrouei.

"Don't worry about supply", Al Mazrouei said.

OPEC has a self-imposed goal of bringing inventories in industrialized countries down to their five-year average. "I don't think there will be issues as a result of sanctions". OPEC has an adequate "buffer" of potential output, he said.

A decline in Iranian oil exports would add upward pressure on prices, which have already gained this year due to a global supply cut deal between OPEC and non-OPEC producers. It's unclear how much he intends to restrict Iran's oil sales, but most analysts predict a decrease.

A USA withdrawal from the Iran nuclear accord “could lead to 1 million barrels off the market, which of course would affect things, ” BP Chief Executive Officer Bob Dudley said in a separate Bloomberg TV interview in Abu Dhabi.

Other forecasts vary from "little impact" anticipated by Barclays Plc, to a possible loss of more than 50% of the country's 2.7 MMbbl of daily shipments predicted by consultant FGE.

"Don't worry about supply", he told reporters when asked about the impact on oil supplies from US sanctions on Iran, adding that this was not the first time an OPEC member had been in such a situation.

According to Emirati energy minister Suhail bin Mohammed al-Mazroui, OPEC is not now concerned about USA sanctions on Iran.

"What we are concerned about in the next (OPEC) meeting is what is the right level of inventory that we should see, and (how) can we put this group together for longer", he said. "We will meet in June to discuss that".