Oil market ‘fundamentals are fine,’ no shortage of supply, says Mohammed Al Sada
Qatar's oil minister said he does not expect OPEC to make a “dramatic”
decision during the upcoming OPEC meeting in June, and that the market is still
"We think the fundamentals are fine... I don't expect
OPEC to take a dramatic decision," Mohammed Al Sada told reporters on the
sidelines of an industry meeting in Doha on Sunday.
Oil fell on Friday to cap a frenzied trading week that
sliced prices by a record of more than $16 a barrel on demand worries and a
move by investors to slash commodities exposures.
Brent crude fell $1.67 to settle at $109.13 a barrel in
heavy trade, with volumes twice the 30-day moving average. The contract tumbled
$16.76 a barrel for the week, marking the largest weekly decline ever in dollar
"Today the price of most commodities has dropped, not
only oil. We think that fundamentals are fine and we cannot see any shortage of
supply," said Al Sada.
He added that OPEC and non-OPEC countries were producing
enough crude to keep stocks at “healthy” levels, and it is in the interest of
OPEC countries to reduce price volatility.
"We are after the stability of oil prices. It's in the
interest of suppliers and consumers," he said.
Asked if he expects a free fall in the oil price similar to
the one in 2008, Al Sada said it was unlikely.
"The world economy is not bad enough to a see a free
fall [in oil prices]. Many developing countries are sustaining healthy GDP