Saturday, February 26, 2011

Oil market well supplied, says UAE energy minister

Oil market well supplied, says UAE energy minister
By GN Dubai Business News - Mon Feb 14, 2011 - 4:11 pm
Abu Dhabi: The UAE's oil production currently is around 2.2 million barrels per day (bpd), in line with the output target set for the country by the Organisation of Petroleum Exporting Countries (Opec), Minister for Energy Mohammad bin Dha'en Al Hamli said here on Monday.
The UAE's current oil production capacity was 2.8 million bpd, Al Hamli told reporters on the sidelines of an energy event here.
Commenting on high oil prices, which have shot above $100 a barrel, Al Hamli said: "Oil prices react to events and they have reacted to events in Egypt," said Al Hamli.


"The market is well-supplied. The price can't be explained by current fundamentals. The stocks are high," he added.
Political instability and public uprising in Egypt which eventually led to Hosni Mubarak stepping down as the president of Egypt, enabled oil prices to shoot up. It is widely believed that speculators are driving the oil prices higher rather than the fundamentals of supply and demand

No comments:

Post a Comment