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Wed 6 Apr 2011 04:51 PM

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UAE's Al Hamli says oil market fundamentals are 'in good shape'

Surge in oil prices are a reflection of geopolitics and natural disaster, UAE energy minister says

UAE's Al Hamli says oil market fundamentals are 'in good shape'
Mohammed Al Hamli, UAE Oil Minister

World oil markets are “adequately supplied” and prices reflect concerns about unrest in some producing countries and the disaster in Japan, according to UAE energy minister Mohamed Al Hamli.

“The surge in oil prices are a reflection of geopolitics and natural disaster but not the fundamentals,” he said at an oil conference in Paris. “They are in good shape.”

Oil traded near its highest price in 30 months for a second day, pushed in part by political conflict in the Middle East and North Africa, the world’s largest crude supply regions. Oil rose to almost $150 a barrel in 2008.

“We have spare capacity. We can always supply to the market,” Al Hamli said. “The market should pay more attention to real supply rather than imagined shortages.”

Iraqi deputy prime minister Hussain Al Shahristani also said that OPEC is meeting current demand for crude and “there is no shortage” in the market.

Oil prices are unlikely to rise to record 2008 levels because markets are better regulated, he said at the same conference. “Speculators will not be allowed” to push the price as high, he said.

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