13 Jan 2015
UAE oil minister: Sudden rise in oil unlikely – KBC
FXStreet (Barcelona) - The KBC Bank Team notes UAE’s oil minister commented that it could take year to adjust oil production and that a sudden rise in oil prices is unlikely.
Key Quotes
“The oil price slumped by more than 5% yesterday. Today in early trading, Brent is even seen at 45.8 USD/bbl.”
“Regarding news, Suhail Al Mazrouei (a UAE oil minister) reiterated today that the OPEC will stick to its strategy and will keep its production unchanged. He also said that it could take years to adjust oil production to appropriate levels and that it was unlikely we would see a sudden rise in oil prices.”
“Though we acknowledge risks related to the June OPEC meeting, we also do not expect the cartel will change its policy.”
“All in all, Mazourei’s comments are in line with our view that there may be only a handful of reasons for oil price to go up significantly in the short-term.”
“On the other hand we still see current prices are too low from the longer term perspective. As usual this view is of course based on many additional assumptions such as on steady growth of oil demand.”
Key Quotes
“The oil price slumped by more than 5% yesterday. Today in early trading, Brent is even seen at 45.8 USD/bbl.”
“Regarding news, Suhail Al Mazrouei (a UAE oil minister) reiterated today that the OPEC will stick to its strategy and will keep its production unchanged. He also said that it could take years to adjust oil production to appropriate levels and that it was unlikely we would see a sudden rise in oil prices.”
“Though we acknowledge risks related to the June OPEC meeting, we also do not expect the cartel will change its policy.”
“All in all, Mazourei’s comments are in line with our view that there may be only a handful of reasons for oil price to go up significantly in the short-term.”
“On the other hand we still see current prices are too low from the longer term perspective. As usual this view is of course based on many additional assumptions such as on steady growth of oil demand.”