Qatar’s energy minister on Monday affirmed oil production in the Middle East remains stable and denied rumours of supply shortage in the market.
“Supply from the Middle East has been reliable despite perceived disturbances in the region…there is no shortage of oil,” Mohammed Saleh Al Sada said during a Middle East Petroleum & Gas Conference in Bahrain.
Analysts say top OPEC members from the Gulf like Saudi Arabia, Kuwait and the UAE have been pumping more oil to bring prices down, which had surged due to US-led sanctions on Iranian oil supplies.
Oil prices jumped to $128 in March, the highest level since 2008. The 12-member Organisation of Petroleum Exporting Countries produces around 32.3m barrels per day (bpd) which is 2.3m bpd above OPEC’s agreed target.
“Spare capacity remains at a comfortable level and investments are coming back in the next years to reinforce this capacity’s,” the Qatari energy minister said.
Sada said during an energy conference in Paris last week that Gulf oil producers will have to spend around $100bn a year over the next 25 years to meet future demand, out of total investment of $19 trillion.