UAE Oil Min: Have Implemented Decision Taken in Doha

The United Arab Emirates has implemented the oil production cuts agreed in Doha, the country's oil minister said Wednesday at a conference in Abu Dhabi, U.A.E. The U.A.E. agreed to cut some 100,000 barrels a day from current production at the emergency Organization of Petroleum Exporting Countries meeting held in Qatar last month.

"I have implemented the decision we have taken in Doha," Mohammad Bin Dhaen Al Hamli told reporters.

He wouldn't confirm whether the cut was 100,000 or 101,000 b/d, or if the supply cuts to buyers would remain within the contractual limits. Most contracts allow a 5%-10% margin around the contracted amount to allow flexibility to both the buyer and seller.

As to whether the group will cut more output at the December OPEC meeting in Abuja, Nigeria, the minister said this was yet to be determined. "We have still a lot of time," he said.

The fall in the oil price was more to do with "psychology rather than supply and demand," he said. "We want to make sure the market is well supplied. The price - we leave it to the market to decide."

The minister, while refusing to specify what oil price producing countries would like to see, said a suitable price would be one that allowed continued development of new fields.

"We would like a reasonable price that would make us continue with our efforts to build up production capacities," he said.

But at the same time, he acknowledged that a very high price was not good for the sector. "We want to be fair to the consuming nations because we want to make sure growth in demand continues," he added.

Al Hamli will take over the OPEC presidency next year.