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UAE plans to boost oil stocks to meet demand

ABU DHABI — The UAE said yesterday it plans to increase its oil stockpiles in order to meet any supply crunch on world markets.

“We must always have oil stockpiles to meet demand in cases of supply shortages in the international market,” Oil Minister Mohamed Al Hamili told reporters. He gave no further details or figures.

The UAE is currently pumping just under 2.4 million barrels per day.

The minister said the UAE is committed to its policy within Opec to pump extra supplies to world markets in case of emergencies.

He also said yesterday that current oil prices, again within reach of $50 a barrel, were reasonable.

“Prices are at a reasonable level,” Mr Hamili told reporters, adding there was some concern that speculation could lead to a further rise in prices.

World oil markets have been fuelled by Opec talk of a cut in supplies that could deplete healthy U.S. stockpiles before summer.

Opec meets on March 16 in Isfahan, Iran, to chart output policy for the second quarter.

“The second quarter is difficult,” said Hamli. “Oil inventories increase and affect prices.”

Oil has rallied $4 over the past week on new forecasts for a tighter-than expected market this year and continued warnings from Opec that a slide in prices or big build in inventories could prompt swift action to stem output.