Oil Producers' Economies May Not Be Affected with Bearish Crude Prices

11/16/2014 10:24:47 PM

(MENAFN- Qatar News Agency) Kuwait November 11 (QNA) - Current bearish oil prices will unlikely affect negatively national economies or mega ventures in Kuwait and other oil-producing countries according to the Kuwaiti Minister of Oil.

The Kuwaiti Ministry of Oil is monitoring current level of international oil prices said Dr. Ali Al-Omair also the State Minister for National Assembly Affairs who also expressed hope the crude prices would not drop "to levels detrimental to the national economy" echoing concerns manifested at various quarters regarding such prospected repercussions due to decline of states' income.

Minister Al-Omari who was speaking to Kuwait (KUNA) News Agency after taking part in the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) said oil prices are primarily affected with demand and supply adding that current fall of global economic growth coincided with a glut on the oil market.

OPEC's member states which produce a third of the world's oil will meet in the end of this month to discuss the file of the crude prices and take the appropriate decisions in a manner that "will serve economies of the organization's countries" Minister Al-Omair confirmed. He expressed his belief that the prices would settle at a "certain level to be compatible with the output cost." Elaborating on this particular point the Kuwaiti official expressed his belief that the oil prices' fall would prompt a number of companies to stop investing in the oil sector an event that would help in stabilizing the prices. Explaining further he indicated that these investors would drop out particularly ibn the event the cost of production exceeded the prices.

Oil prices have recently dropped to approximately USD 80 per barrel as compared to around USD 110 pb posted only months ago prompting the concerned nations namely the producers to worry about forecast drastic fall of income an eventuality that may affect various economic sectors development schemes payments etc.

Many of the nations that produce oil depend heavily on the hydrocarbon product to generate revenues for the government budgets.

On the conference the minister said it would "impact positively on the oil sectors namely in the realms of technology technical and human resources." (QNA)

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