DUBAI, Nov 7: The United Arab Emirates’ oil minister said on Monday that current oil supplies were sufficient to meet global demand in the fourth quarter of 2005 and early next year.
Of course, current production from inside and outside the organisation (Opec) meets the need of the global market during the fourth quarter of this year and the beginning of next year,” Mohammed al-Hamli told the state news agency WAM.
He said the UAE was producing at a rate of 2.5 million barrels per day (bpd) and reiterated that it would add around 200,000 bpd by the end of 2005 or beginning of next year.
Opec agreed at its September meeting to suspend its output ceiling and offer the market its 2 million bpd spare crude oil capacity in an attempt to bring down prices, which hit a record high of $70.85 a barrel in August.
Prices have since fallen by more than $10 on expectations high prices and mild weather have eroded demand.
Asked about the outlook for prices and whether they would surpass the record high, Hamli said:
World oil prices are likely to increase in the near future ... (But) In general, they are not expected to be much higher than the levels of the last few months because oil supplies to the global markets at present meet global demand.
Opec acting Secretary-General Adnan Shihab-Eldin said last month that there had been no takers for Opec’s offer, showing that there was enough crude oil to meet demand, and that Opec has enough spare capacity to cover extra winter demand.—Reuters
