International Oil Market Is 'Well-Supplied'
KUWAIT CITY - The world crude oil market is well-supplied, and supply has so far been covering energy needs, the secretary-general of the International Energy Forum said Monday.
"The statistics we have told us that the (oil) market is well-supplied," Aldo Flores told Dow Jones Newswires in an exclusive interview. "The supply is meeting the demand."
Flores also said that both producers and consumers want to see stability in the world oil prices. He also described current oil prices as less volatile than a few years ago when they reached $147 a barrel.
"Producers want prices not too high but not too low," he said on the sideline of the IEF's 13th annual conference being held in Kuwait City. "Both producers and consumers want fair prices," he added. Delegates from more than 80 nations and international oil companies arrived Monday in Kuwait for the IEF conference.
Oil is trading close to levels not seen since the height of the war in Libya last year, which affected the amount of oil reaching global market.
Spare capacity of oil producing countries, including non-OPEC producers, according to discussions among analysts, is ranging between 2 and 4 million barrels a day. "For sure we have enough spare capacity," he said.
The International Energy Forum is an independent organization based in Riyadh that works with the Organization of Petroleum Exporting Countries, the International Energy Agency, and transit oil countries.
The IEF secretary-general also said the Gulf oil producing countries bear the bulk of the burden created by the current tension in the Persian Gulf region, and such tension should be solved through diplomacy, in a clear reference to the West's impasse with Iran over its nuclear program.
The European Union has imposed severe sanctions against Iran including a ban on its oil exports to its member states. Tehran has threatened to close the strategic Strait of Hormuz if it is banned from exporting its oil.
Copyright (c) 2012 Dow Jones & Company, Inc.
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