ID :
18550
Tue, 09/09/2008 - 13:05
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https://oananews.org//node/18550
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UAE oil minister: OPEC will continue to meet demand
Abu Dhabi, Sep. 9, 2008: OPEC's fundamental policy of ensuring that the market remains well supplied has not changed and will not change when OPEC ministers meet in Vienna on September 9th, UAE Minister of Energy Mohammed bin Dhaen Al-Hameli told Emirates News Agency, WAM.
"However, it is fair to point out that the determining factor behind any decision on production levels is whether or not the market is well supplied. Commercial crude oil stock levels in OECD countries are within the five-year average level which indicates that the market is well-supplied," remarked Al-Hameli who will lead the UAE delegation to the meeting in Vienna.
He said the upcoming meeting (149th Meeting of the OPEC Conference) on Tuesday will discuss production targets and production levels in the next few months and it is not possible to predict the outcome of the meeting.
Asked about his expectation for oil prices until the end of the year, Al-Hameli said "it is virtually impossible to predict oil prices because they are set by international oil markets with little or no influence from producing countries." Markets, he explained, continue to be driven by the same factors - financial speculation, geopolitical concerns and adverse weather events as well as fundamental demand and supply factors. "The recent decline in prices simply shows that the oil price had risen too high and too fast." Commenting on suggestions that OPEC production in the first quarter of 2009 could be as much as 1.5mn b/d above the call on OPEC crude, he said "our policy is to constantly monitor supply and demand trends and to respond accordingly. The call on OPEC crude in 2009 will depend largely on emerging macroeconomic trends and we are closely following worldwide economic growth indicators." He ruled out views that an expected fall in oil prices would affect investment in increasing long term oil production capacity.
Investment decisions by National Oil Companies, he explained, are based on a very long time horizon and are not affected by short term fluctuations in the oil price." According to him, the economic viability of each project is carefully studied and the oil price assumptions are always very cautious: all existing and planned projects are very attractive at current price levels.
Asked about the outlook of crude oil demand growth this year and next year, the Minister said OPEC estimates that crude oil demand will grow by 1mn b/d in 2008 and that there might be a slight fall in demand growth next year.
"While economic growth in OECD countries is set to be weak, economic growth in China, India and Russia is expected to remain relatively strong leading to continued growth in overall demand for crude oil," he said.
"However, it is fair to point out that the determining factor behind any decision on production levels is whether or not the market is well supplied. Commercial crude oil stock levels in OECD countries are within the five-year average level which indicates that the market is well-supplied," remarked Al-Hameli who will lead the UAE delegation to the meeting in Vienna.
He said the upcoming meeting (149th Meeting of the OPEC Conference) on Tuesday will discuss production targets and production levels in the next few months and it is not possible to predict the outcome of the meeting.
Asked about his expectation for oil prices until the end of the year, Al-Hameli said "it is virtually impossible to predict oil prices because they are set by international oil markets with little or no influence from producing countries." Markets, he explained, continue to be driven by the same factors - financial speculation, geopolitical concerns and adverse weather events as well as fundamental demand and supply factors. "The recent decline in prices simply shows that the oil price had risen too high and too fast." Commenting on suggestions that OPEC production in the first quarter of 2009 could be as much as 1.5mn b/d above the call on OPEC crude, he said "our policy is to constantly monitor supply and demand trends and to respond accordingly. The call on OPEC crude in 2009 will depend largely on emerging macroeconomic trends and we are closely following worldwide economic growth indicators." He ruled out views that an expected fall in oil prices would affect investment in increasing long term oil production capacity.
Investment decisions by National Oil Companies, he explained, are based on a very long time horizon and are not affected by short term fluctuations in the oil price." According to him, the economic viability of each project is carefully studied and the oil price assumptions are always very cautious: all existing and planned projects are very attractive at current price levels.
Asked about the outlook of crude oil demand growth this year and next year, the Minister said OPEC estimates that crude oil demand will grow by 1mn b/d in 2008 and that there might be a slight fall in demand growth next year.
"While economic growth in OECD countries is set to be weak, economic growth in China, India and Russia is expected to remain relatively strong leading to continued growth in overall demand for crude oil," he said.
