Low Oil Prices to Force Countries to Freeze Production Levels

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UAE Energy Minister Suhail Mazrouei said that the recent initiative of Russia and several members of Organization of the Petroleum Exporting Countries (OPEC) to freeze average monthly oil production at January levels would have a positive effect on global oil oversupply.

Oil refinery in Escombreras (Cartagena) - Sputnik International
Doha Oil Production Freeze Agreement Paves Way to New Producers Alliance
MOSCOW (Sputnik) — Plummeting global oil prices will cause oil producing countries to freeze their extractions at certain levels, UAE Energy Minister Suhail Mazrouei said in a statement on Thursday.

"Current prices are not suitable for anyone and will force producers to stabilize production levels and reduce investments in the higher oil costs," the statement read, as quoted by the WAM news agency.

The energy minister added that the recent initiative of Russia and several members of Organization of the Petroleum Exporting Countries (OPEC) to freeze average monthly oil production at January levels would have a positive effect on global oil oversupply.

Pump jacks are seen at the Lukoil company owned Imilorskoye oil field, as the sun sets, outside the West Siberian city of Kogalym, Russia, January 25, 2016 - Sputnik International
Qatari Energy Chief May Join Venezuela, Iran, Iraq Ministers at Oil Talks
On Tuesday, Russia, Saudi Arabia, Qatar, and Venezuela, held talks on the current oil market situation in the Qatari capital of Doha and agreed to proceed with the initiative if other countries followed suit. The proposal was later backed by Ecuador, Algeria, Nigeria and Oman.

Brent crude prices plunged from $115 per barrel to $48.5 per barrel between June 2014 and January 2015, causing significant financial problems for many oil-exporting countries.

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