UAE Minister of Energy: Oil price rally not over yet

Supply glut in the market said to have decreased significantly, and 'we are optimistic', added Suhail Al Mazroui.

The rally oil prices is not over yet and will continue for some time, the UAE Minister of EnergySuhail Al Mazroui said.

“We are optimistic about this meeting [Opec] and we have seen a very good move on the correction ... the most important thing is that the world economy is growing as we predicted,” said Mr Al Mazroui at the Opec International Seminar in Vienna on Wednesday. “We are comfortable with the move so far from the last meeting till today.”

Opec oil ministers are meeting in the Austrian capital tomorrow where the group is expected to confirm it will continue to pump oil nearly flat-out for months more, content that last year’s shock market therapy has revived demand and knocked back growing competition.

With oil prices having stabilised, at about $65 a barrel, there is little appetite in Opec to modify production limits.

“Demand is increasing, the correction is there ... it is not over yet, this correction, it is going to take time,” Mr Al Mazrouei said. “But definitely the glut in the market has decreased significantly. And we are optimistic.”

Benchmark Brent crude oil for July fell more than 2 per cent to a low of $63.74 before recovering a little to around $63.90 midafternoon UAE time.

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