UPDATE 1-OPEC won't back down, UAE minister says as oil plunges
(Updates with context, quotes)
By Maha El Dahan and Rania El Gamal
ABU DHABI Jan 13 (Reuters) - OPEC will not cut its oil output to support prices but expects higher-cost producers to do so, the United Arab Emirates energy minister insisted on Tuesday as oil plunged near six-year lows.
While Suhail bin Mohammed al-Mazroui was speaking, Brent crude dropped 4 percent to below $46 a barrel following a 5 percent plunge on Monday, continuing a rout that has more than halved its value in the past six months.
Mazroui showed no sign of backing down from OPEC's insistence that other producers - particularly the U.S. shale oil drillers which it blames for oversupplying the market -reduce their output.
"The strategy will not change...," he told a Gulf Intelligence energy conference in Abu Dhabi.
By not reducing output, "we are telling the market and other producers that they need to be rational and like OPEC, they need to look at growth in the international market for oil and need to cater that additional production to that growth".
The firm stance of Saudi Arabia, the UAE and other Gulf Arab producers in the Organization of the Petroleum Exporting Countries is causing dismay among some other oil exporters. As Mazroui spoke, Iranian President Hassan Rouhani said in Tehran that countries behind oil's plunge would regret it.
"Those that have planned to decrease the prices against other countries, will regret this decision," Rouhani said in a speech broadcast on state television. Continuación...