UAE Oil Minister Mohammed al Hamli said on Saturday that there was still some oversupply in the global oil market and that he was not concerned with prices hovering above the $80 threshold.
Oil prices hovered near $82 per barrel on Friday, after rising during the week on a weaker dollar, but tempered by signs of a softer US economy.
On the sidelines of a meeting of Gulf oil ministers in Kuwait Hamli told reporters”Market forces are the reason for the rise we are seeing in the oil price … we are not concerned about the price.”
Hamli said he was unconcerned at levels above $80, adding that the market was “a bit oversupplied” right now.
He said: “We are seeing a positive sign for economies recovering and the price of oil has been hovering in the $70-$80 (range).”
US crude for November stood at $82.20 on Saturday,
The Organization of the Petroleum Exporting Countries (OPEC) meets in Vienna next week for the first time in seven months, but Hamli declined to comment on any decision by the group.
A cheap dollar makes oil more appealing to both buyers holding other currencies and those looking to shift from cash to commodities, seen as safe havens.
Robust oil prices might induce OPEC to pump more crude, helping to calm a rising market and limit damage to a fragile economy, but the producer club is unlikely to agree a formal change in output.
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