News & Reports News Year 2010 May , 2010 Oil Global Market

Oil Global Market

Oil prices pressed by Europe debt crisis: Qatar

Qatar expects further pressure on oil prices from the uncertainty engendered by the European debt crisis, its oil minister said on Saturday.

“The oil price is not reflective of demand and supply, but psychological (factors) and uncertainty, especially in Europe (and due to the Greece) bailout,” Abdullah bin Hamad al-Attiyah told reporters in the Bahraini capital Manama.

“All this put a lot of pressure on the world economy and the oil price,” he said.

US crude oil futures fell more than 3 per cent to a three-month low on Friday on concerns the European debt crisis will curb energy demand growth, with prices already under pressure from swollen US oil inventories.

Opec Secretary General Abdullah al-Badri said on May 9 the global oil market was oversupplied, calling for greater compliance among members of the group.

Attiyah said he expected further drops in oil prices, without elaborating to which price levels, and that said prices were very volatile.

He said he watched the development with ‘nervousness’