Qatari minister says hike badly needed
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.