(MENAFN- Khaleej Times) The oil market fundamentals are strong and there is no need to panic as prices touched $70 per barrel last week, UAE Minister of Energy and Industry Suhail bin Mohammed Faraj Faris Al Mazrouei said on Saturday.
He was speaking at the Atlantic Council Global Energy Forum that opened in the UAE capital on January 12. The forum brings together global energy leaders to throw light on the challenges and opportunities for cooperation in the energy sector and formulate responses to the changing geopolitics of energy transition.
Speaking at a session on 'The future of Opec and oil markets', Al Mazrouei said he does not see the need to review output cuts as the surging price is due to peak demand this month.
"It is premature. The market is not far from where we are today. There is an increase in price. But we need to wait for the first or second quarter and are still worried about 100 million barrels of five years average. The market fundamentals have not given us any signals that we need to do something [about cutting output].
"I don't believe if we see the prices go up to $69 or $70 per barrel, we should meet and panic. I think we stay on course."
Al Mazrouei said at the oil ministers' meeting in Oman next week, they will take stock of the situation. "I am not expecting any huge changes or review."
According to him, high compliance by oil-producing countries to the agreed output cut has also resulted in the market regulating itself. "Countries were committed and transparent. They delivered what they promised."
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Anjana Sankar Anjana Sankar is a journalist by profession and a humanist by passion. Her cluttered desk is not indicative of her state of mind.
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