Dubai: There is no need for the Organization of the Petroleum Exporting Countries (OPEC) to boost output this year, the group’s head of research Hasan Qabazard said.
“I really don’t see a need this year” Qabazard told reporters at an energy event in Dubai.
Qabazard said stocks were building as oil production was outstripping demand by 800,000 bpd to one million bpd in the second quarter, Qabazard said.
That was before top oil exporter Saudi Arabia boosted supply, he said. “Now, with the 300,000 bpd from Saudi, stocks should build even more.”
Saudi Arabia has boosted supply to help meet the world’s need for fuel and may further increase output later if needed, a senior Gulf OPEC source said on Wednesday.
Oil fundamentals were sound and did not justify high oil prices, Qabazard said. “I don’t see any gas lines to justify $130/ barrel oil.”