U.A.E. Implements Oil Cuts Agreed by OPEC, Hamli Says

By Ayesha Daya and Shaji Mathew

Nov. 3 (Bloomberg) -- The United Arab Emirates, the third- largest oil producer in OPEC, is implementing the supply cuts agreed on by the group last month and has informed consumers.

``We have already advised our customers about the cuts,'' Oil Minister Mohamed al-Hamli told reporters in Abu Dhabi today. He declined to specify the size of the reduction.

The Organization of Petroleum Exporting Countries, supplier of more than 40 percent of the world's crude, resolved to slash production by 1.5 million barrels a day at a summit in Vienna in October to stem a decline in oil prices. Crude futures have fallen 53 percent from their record $147.27 a barrel on July 11 and have dropped 27 percent in the past year.

Al-Hamli declined to comment on whether OPEC will need to make a further production cut.

The decline in prices isn't likely to affect projects that are already planned, he said.

``Investment is for the long term, the projects we have already undertaken are going ahead,'' al-Hamli said. ``It is important to invest in increasing capacity for the next cycle.''

To contact the reporters on this story: Ayesha Daya in Abu Dhabi on adaya1@bloomberg.net; Shaji Mathew in Abu Dhabi on shajimathew@bloomberg.net@bloomberg.net