UAE: Oil market very well supplied
Mon, 14 Feb 2011 08:29:24 GMT
Following Egypt's revolution, which surged oil prices over the past weeks, UAE Energy Minister Mohamed bin Dhaen al-Hamli says the oil market is very well supplied.
"Oil prices are reacting to events wherever they are. Events in Egypt have also contributed to the movement in prices," al-Hamli told reporters on the sideline of an oil forum in Abu Dhabi on Monday.
"The market is well supplied. The current price cannot be explained by the market fundamentals," the UAE energy minister added.
The Egyptian revolution, which led to the resignation of President Hosni Mubarak, affected the oil prices, raising fears that mounting political unrest in the North African state might disrupt supplies through the Suez Canal.
Oil prices surged beyond $101 a barrel in Asian trading Monday on concerns over political uncertainty in the Middle East.
Brent North Sea crude for March soared 88 cents last Thursday to $103.22 in Asian trade. New York's main futures contract, light sweet crude for March, climbed 65 cents to $91.51.
Although Egypt is not among the main crude oil exporting countries, more than two million barrels of oil are transferred to the Mediterranean Sea through the Suez Canal on a daily basis.
Egyptian protesters staged massive demonstrations for 18 consecutive days in Cairo's Liberation Square, forcing former President Hosni Mubarak to step down on Friday.
Mubarak handed power over to the Supreme Council of the Egyptian Armed Forces on the same day, giving in to pro-democracy protests across the North African country.
Many pro-democracy Egyptians have refused to leave Liberation Square after Mubarak's resignation, saying they will remain until the army takes a series of steps toward democratic reforms, which include installing a civilian-led government and abolishing the repressive state of emergency.