Complex Made Simple

Oil oversupply finally over?

* “ glut is almost gone… I think we are at the bottom of this cycle”: UAE energy minister

* “We are oversupplying the market with this product”: Oman’s oil and gas minister

* Market continues to see major moves from big players; oil price still fluctuating

 

Industry leaders seem to have conflicting views on the supply glut situation in the global oil market. While some say it has reached supply-demand balance and prices have already bottomed out, others still doubt it.

Even as the debate progresses, the international market is continuing to see major moves from big players and the price of oil keeps fluctuating.

The UAE energy minister Suhail bin Mohammed Al Mazrouei said on Monday that global oil supply glut was almost gone.

“The glut is almost gone… I think we are at the bottom of this cycle,” he said while addressing the ADIPEC oil conference in Abu Dhabi.

 

Click here to read about Oman Oil’s partnership with Kuwait Petroleum

 

On the other hand, small non-OPEC oil producer Oman said the petroleum market remained oversupplied.

“I think… the fundamental problem is still there, that we are oversupplying the market with this product that is finite and difficult to find,” Oman’s Minister of Oil and Gas, Mohammad bin Hamad Al Rumhy, said.

“I am concerned, although optimistic. Maybe we have seen the bottom, but we don’t know how long this bottom will last,” Al Rumhy added.

 

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(With inputs from Reuters)