UAE Says Global Oil Glut Could Last for Years

The current worldwide glut of petroleum could last for years unless producers outside the Organization of the Petroleum Exporting Countries "act rationally" and reduce their output, declares the United Arab Emirates' oil minister.

Suhail bin Mohammed al-Mazrouei tells The National that "positive corrections" would come this year. But he reiterates OPEC's position that all such adjustments must come from non-cartel producers. He says the UAE plans to expand its own output capacity over the next two years.

OPEC, which supplies about 40% of the world's petroleum, agreed last November to maintain its own production in spite of a 50% drop in the price of crude in 2014. Analysts attribute much of the decline on increased output from oil shale operations in North America.

Oil prices continue to fall this year, with Brent crude dipping below $50 per barrel earlier today for the first time in five years. The U.S. benchmark, West Texas Intermediate, did the same last week. Mazrouei blames the decline entirely on non-cartel producers, declaring "OPEC was not part of the oversupply" and adding that the cartel "will not panic."