UAE Energy Minister Sees No End to Oil Glut

The Energy Minister of the United Arab Emirates has issued a warning to investors and market watchers that the oil glut being seen could continue for years if producers outside of OPEC do not cut their production outputs.

According to Bloomberg:

Brent crude, a pricing benchmark for more than half of the world’s oil, tumbled 48 percent last year, the most since 2008. OPEC decided Nov. 27 to maintain production instead of cutting output to eliminate a surplus left by increased supplies from the U.S. to Russia.

Suhail Al Mazrouei, U.A.E. energy minister, said:

We are experiencing an obvious oversupply in the market that needs time to be absorbed. Depending on the actual production growth from non-OPEC countries, this problem could take months or even years. If they act rationally, we can see positive corrections during 2015.

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