Oil rallies as UAE backs output freeze

The United Arab Emirates (UAE) will support a global oil freeze initiative to help support markets, Suhail bin Mohammed al-Mazroui, its oil Minister, said on Monday ahead of a meeting of oil producers and consumers in Algeria.

“If all OPEC members are in agreement around a decision, I think there is high likelihood of getting support of others, especially Russia,” Al-Mazroui said in Algiers.

“For us in the UAE, we are for a decision. We think a freeze will help if it is agreed. We hope that all are going to agree.”

Members of the Organisation of the Petroleum Exporting Countries (OPEC) are informally meeting on the sidelines of the International Energy Forum in Algeria from September 26 to September 28.

The OPEC members are expected to discuss a possible deal to limit output.

Due to a possible output freeze, oil rallied on Monday, putting an end to a nervous trade driving volatility to its highest since exporters met in April.

Brent crude futures LCOc1 rose 73 cents to $46.62/barrel in early trading, having rallied from a session low of $45.74, while U.S. crude rose to $45.02/barrel.