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Wed 21 Jan 2015 04:51 PM

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Kuwait set to base 2015 budget on $40-45 oil

Oil minister says fall in oil price can't be controlled until oversupply is absorbed

Kuwait set to base 2015 budget on $40-45 oil
Kuwaits oil minister Ali al-Omair. (AFP/Getty Images)

The fall of oil prices can't be controlled until oversupply is absorbed by better economic growth, Kuwait's oil minister Ali al-Omair told reporters on Wednesday.

Omair, speaking on the sidelines of an energy industry conference, did not say when that happen. Asked whether oil prices had reached bottom, he said he could not answer.

He also said the country's state budget for the next fiscal year starting on April 1 was expected to be based on an everage oil price assumption of $40 to 45.

Iraq's oil minister Adel Abdel Mehdi, also attending the conference, told reporters that such a steep fall of oil prices after last November's OPEC meeting wasn't expected.