ABU DHABI: United Arab Emirates’ energy minister said on Wednesday that Russia was committed to its oil supply cut agreement with OPEC and would not raise its output unless in coordination with the exporting group.
UAE’s Suhail bin Mohammed Al-Mazroui also said that compliance with the cuts by both Russia and OPEC’s second largest producer Iraq has increased in March, adding that he expected the oil market to achieve balance by the end of 2019.
“Russia will not increase its output unless in coordination with the rest of OPEC and OPEC+ countries,” Mazroui said.
“I believe in the wisdom of Russia, and I believe that Russia has benefited from this agreement... I don’t see any reason for Russia not to continue with us.”
Mazroui’s comments came a day after Russian President Vladimir Putin said that Russia and OPEC should discuss the future of their oil output-cutting deal later this year, adding that current oil prices suited Moscow.
Brent futures LCOc1 were at $70.93 per barrel at 1100 GMT, up 32 cents, or 0.44 percent, from their last close on Wednesday as OPEC cuts and US sanctions on Iran and Venezuela continued to tighten supply.
The Organization of the Petroleum Exporting Countries and other oil producers led by Russia agreed to reduce their combined output by 1.2 million barrels per day (bpd) from Jan. 1 this year for six months in an attempt to balance the market.
Russia agreed to cut its production by 228,000 bpd but has struggled to comply with the pact.
On Monday, one of the key Russian officials to foster the pact with OPEC, Kirill Dmitriev, signaled that Russia wanted to raise oil output when it meets with OPEC in June because of improving market conditions and falling stockpiles.
But Putin, the ultimate decision-maker in Russia, seemingly softened that stance, saying it was too early to judge whether the deal should be extended.
Speaking at a conference in Abu Dhabi, Mazroui also said the UAE can raise its crude oil production up to 3.5 million bpd if needed.
The UAE currently produces around 3 million bpd under the OPEC+ reduction agreement.
Russia committed to OPEC+ oil cuts: UAE energy minister
Russia committed to OPEC+ oil cuts: UAE energy minister
- ‘Russia will not increase its output unless in coordination with the rest of OPEC and OPEC+ countries’
- Russia agreed to cut its production by 228,000 bpd but has struggled to comply with the pact
Kuwait to boost Islamic finance with sukuk regulation
- The move supports sustainable financing and is part of Kuwait’s efforts to diversify its oil-dependent economy
RIYADH: Kuwait is planning to introduce legislation to regulate the issuance of sukuk, or Islamic bonds, both domestically and internationally, as part of efforts to support more sustainable financing for the oil-rich Gulf nation, Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah said on Wednesday.
Speaking at the World Governments Summit in Dubai, Al-Sabah highlighted that Kuwait is exploring a variety of debt instruments to diversify its economy. The country has been implementing fiscal reforms aimed at stimulating growth and controlling its budget deficit amid persistently low oil prices. Hydrocarbons continue to dominate Kuwait’s revenue stream, accounting for nearly 90 percent of government income in 2024.
The Gulf Cooperation Council’s debt capital market is projected to exceed $1.25 trillion by 2026, driven by project funding and government initiatives, representing a 13.6 percent expansion, according to Fitch Ratings.
The region is expected to remain one of the largest sources of US dollar-denominated debt and sukuk issuance among emerging markets. Fitch also noted that cross-sector economic diversification, refinancing needs, and deficit funding are key factors behind this growth.
“We are about to approve the first legislation regulating issuance of government sukuk locally and internationally, in accordance with Islamic laws,” Al-Sabah said.
“This enables us to deal with financial challenges flexibly and responsibly, and to plan for medium and long-term finances.”
Kuwait returned to global debt markets last year with strong results, raising $11.25 billion through a three-part bond sale — the country’s first US dollar issuance since 2017 — drawing substantial investor demand. In March, a new public debt law raised the borrowing ceiling to 30 billion dinars ($98 billion) from 10 billion dinars, enabling longer-term borrowing.
The Gulf’s debt capital markets, which totaled $1.1 trillion at the end of the third quarter of 2025, have evolved from primarily sovereign funding tools into increasingly sophisticated instruments serving governments, banks, and corporates alike. As diversification efforts accelerate and refinancing cycles intensify, regional issuers have become regular participants in global debt markets, reinforcing the GCC’s role in emerging-market capital flows.
In 2025, GCC countries accounted for 35 percent of all emerging-market US dollar debt issuance, excluding China, with growth in US dollar sukuk issuance notably outpacing conventional bonds. The region’s total outstanding debt capital markets grew more than 14 percent year on year, reaching $1.1 trillion.
