Gulf States Not Worried by Oil Price Slide
A top Kuwaiti oil executive said the energy-rich Gulf states are not worried by the slide in oil prices after Brent crude slumped to a 17-month low Wednesday.
"We are not worried at the drop in oil prices; we expect it to rebound to its previous levels soon. We are optimistic," the acting oil undersecretary, Ali bin Sabt, told reporters on the sidelines of a Gulf meeting in Kuwait City.
But he acknowledged that the drop in prices "affects Gulf economies and requires coordination among the Gulf Cooperation Council (GCC) states," which heavily rely on oil exports.
Sabt was speaking as senior GCC energy officials prepared for a regular meeting of oil ministers Thursday.
The GCC groups Kuwait, Qatar, Saudi Arabia and the United Arab Emirates, which are OPEC members and pump more than half of the 30 million barrels a day the organization produces. Oman and Bahrain are the other two GCC members.
Brent North Sea crude slumped Wednesday, as traders fretted over a global supply glut ahead of the latest U.S. crude inventories report.
In early morning deals, the October contract sank to $98.80 per barrel -- the lowest point since May 1, 2013. It later stood at $99.08, down eight cents from Tuesday's closing level.
US benchmark West Texas Intermediate for October delivery dipped four cents to $92.71 a barrel.
On Monday, Brent had plunged below the psychological barrier of $100 for the first time in more than 14 months, weighed down by abundant supplies.
Sabt attributed the drop in crude prices to seasonal, political and psychological reasons besides the return of some countries to production.
Among other issues, the GCC oil ministers are scheduled to discuss proposals to unify prices of petroleum products in the six-nation alliance.
Source: Agence France Presse
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