The Petroleum Minister of the United Arab Emirates announced on Tuesday (27 November) that oil production would be cut by five per cent from January.
The Petroleum Minister of the United Arab Emirates announced on Tuesday (27 November) that oil production would be cut by five per cent from January. Dr Mana Said Al-Oteiba said the reduction was for purely technical reasons and will result in a cutback of between sixty and seventy thousand barrels a day. Dr Oteiba made the announcement following talks on Monday (26 November) with the United States Treasury Secretary William Miller who was on a tour of the Middle East.
SYNOPSIS: Mr Miller was met at Abu Dhabi air port by officials of the United Arab Emirates' government. The propose of his tour of the Gulf States and Saudi Arabia was to reassure Middle Easter leaders that their United States investments are secure following the American decision to freeze Iranian assets during the economic moves associated with the United States Embassy siege in Teheran. Although this issue was central to Mr Miller's talks with Arab governments, the subject of oil supplies and proposed price rise dominated his discussions with United Arab Emirates ministers. Mr Miller held his first round of talks with Vice President and Prime Minister Sheikh Rashid Bin Said Al-Maktoum. Both delegations later reported that the need for energy conservation on a global scale was necessary whatever level of oil production was adopted by petroleum producers. Mr. Miller also outlined the United States energy control programme, designed to support anti-inflation policies.
The United States delegation's final discussions in Abu Dhabi were with Dr Oteiba, who is also the President of the Organisation of Petroleum Exporting Countries (OPEC). The United Arab Emirates is a major oil producer and the announcement of the production cut-back is expected to have a major affect on the world petrol market. Dr Oteiba said a slight and gradual rise in the price of crude oil was inevitable next year but said he would urge the adoption of a moderate price increase during the OPEC conference in Caracas on December the 17th.