Qatari min­is­ter says hike badly needed

7 Days in Dubai - - NEWS -

The oil mar­ket is slowly re­cov­er­ing from its steep drop over the past two years but crude is still not trad­ing at a “fair price” to en­cour­age nec­es­sary in­vest­ment, Qatar’s en­ergy and in­dus­try min­is­ter has said, ahead of next week’s meet­ing of OPEC pro­duc­ers.

Speak­ing to the As­so­ci­ated Press from his of­fice in Doha, Mo­hammed bin Saleh Al Sada said a min­i­mum price of $65 a bar­rel is “badly needed at the mo­ment.”

He cau­tioned that the se­cu­rity of fu­ture sup­plies is as risk be­cause of a drop in in­vest­ment prompted by the price slump that has squeezed oil pro­duc­ers since 2014.

Al Sada did not rule out re­viv­ing talks of a freeze in pro­duc­tion among ma­jor pro­duc­ers af­ter sim­i­lar ne­go­ti­a­tions in Doha col­lapsed last month.

He cur­rently serves as pres­i­dent of the 13- mem­ber OPEC. Al Sada said: “Noth­ing ac­tu­ally is can­celled but we are re­act­ing to the pa­ram­e­ters of the mar­ket. “If OPEC and non-OPEC ma­jor pro­duc­ers think that the re­vival of it is nec­es­sary, it’s all open and on the ta­ble all the time.”

Other ma­jor pro­duc­ers gath­ered in Qatar to dis­cuss the pro­posal last month but failed to agree af­ter Iran re­fused to join in.

His com­ments came as the global off­shore drilling rigs in­dus­try is ex­pected to grow from an es­ti­mated $65.77 bil­lion in 2014 to $102.47 bil­lion by 2019, ac­cord­ing to a re­cent study by re­search firm Mar­kets and Mar­kets. The re­port was re­leased ahead of the Abu Dhabi In­ter­na­tional Petroleum Ex­hi­bi­tion and Con­fer­ence (ADIPEC 2016), which is due to take place in Novem­ber.

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