Qatar Minister: Crude Oil Stocks are not Scarce and Current Prices not Justified by Supply and Demand
The energy and industry minister of Qatar recently expressed that crude oil stocks are not running short in the global market and supply-demand fundamentals are not justifying the current crude oil prices. He said this to reduce worries over supply disruptions.
Producers of oil are committed to provide supply. When demand-supply is analyzed, there is no proof that oil is scarce in any place worldwide, said Mohammed Bin Saleh Al Sada.
He further added that they do not directly interfere with oil prices. Moreover, he said that there are plenty of elements which are not necessarily related to supply-demand fundamentals but to other factors.
According to Mr. Al Sada, Qatar was working at its highest capacity in liquefied natural gas and crude oil production as it creates about 720,000 to 730,000 barrels daily and the same amount of condensates.
Further, he stated that the nation is at its highest LNG-export capacity this year amounting to 77 million tons.
The average Brent crude oil price history in March was $125.33 per barrel. That rate was higher than the $111 per barrel in March of 2011. The increase was mainly due to worries that the conflict between the West and Iran regarding the latter’s alleged nuclear weapons program may severely obstruct oil supplies.
The same concerns have led to new talks in the oil markets that the member countries of the International Energy Agency may release their emergency supplies to ease high current crude oil prices that can possibly damage the unstable global economy.
Last month, the IEA cautioned that supplies of crude oil worldwide were limited and spare capacity was decreasing. The supply of oil globally dropped by 200,000 barrels per day in the month of February in spite of Saudi Arabia’s highest production numbers in 30 years, said the agency.
Qatar has the third biggest reserves of natural gas all over the world next to Iran and Russia.