UAE says $50 oil ‘isn’t going to cut it’ for most producers

Crude oil at $50 a barrel is too low for most producing countries, according to United Arab Emirates Energy Minister Suhail Al Mazrouei. Prices have climbed more than 15 per cent to above $50 a barrel since the November 30 agreement by the OPEC (Organisation of Petroleum Exporting Countries) to cut production for the first time in eight years to curb a global glut. OPEC is reducing output along with 11 other producing nations including Russia after a slump in oil prices the past two years eroded revenue. Brent crude rose 0.8 per cent to $54.07 a barrel at 1.59 pm in London on Wednesday, compared with $46.38 a barrel at the close on November 29 before the OPEC agreement. Prices have still dropped by about half since 2014 because of a glut created by OPEC and producers outside the group. (Mahmoud Habboush, Anthony DiPaola and Sam Wilkin/Bloomberg)