Qatar’s energy minister said on Monday oil production in the Middle East remains reliable and there is no shortage of supply in the market.
“Supply from the Middle East has been reliable despite perceived disturbances in the region… there is no shortage of oil,” Mohammed Saleh al-Sada said during a Middle East Petroleum & Gas Conference in Bahrain, organised by Conference Connection.
Gulf OPEC members with the bulk of the organisation’s spare oil capacity have been working hard to bring oil prices down, which had surged over fear of loss of Iran’s supply due to the West’s new round of sanctions.
Oil jumped to US$128 in March, the highest level since 2008. The 12-member Organisation of Petroleum Exporting Countries produced around 32.3m barrels per day (bpd) which is 2.3m bpd above OPEC’s agreed target.
“Spare capacity remains at a comfortable level and investments are coming back in the next years to reinforce this capacity’s,” said Sada.
During a conference in Paris last week, Sada said Gulf producers will have to stump up US$100bn a year over the next 25 years to meet future demand, out of total investment of US$19 trillion.
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