OPEC need not respond to a rise in oil prices by rushing to change a global supply-cutting pact, United Arab Emirates Energy Minister Suhail al-Mazroui said on Friday.
This year’s rapid rise in oil prices, which hit $70 this week, is backed by strong demand growth and a fall in oversupply on the back of the OPEC and non-OPEC pact, not only by political tensions, Mazroui said.
“We don’t look at the price in a day and say we are in a point where we need to do changes. We need to give the market time,” Mazroui, who holds the OPEC presidency, added.
“I don’t think any fundamentals have changed for us to consider (a change in the output agreement) or panic… There is no need to rush and put assumptions (about) what are we going to do,” Mazroui told an industry conference.
Brent crude futures traded 20 cents lower at $69.06 a barrel at 1129 GMT, after breaking above $70 on Thursday for the first time since December 2014. Read More…