KUWAIT, May 25 (KUNA) -- Assistant Undersecretary of the Kuwaiti Ministry of Oil for Economic Affairs Nawal El-Fzei' said Tuesday the recent wavering of the oil prices marked a "state of fluctuation" rather than a steady downward trend.
She expected, in statements to KUNA here, that the case would remain for months due to lack of certainty and predictability of the world energy market and economic outlook at large.
"The world oil market has witnessed a rare state of stability in the last few months when the oil prices ranged between USD 70 and 80 per barrel. "However, the prices slid sharply in the recent weeks under the pressures of the plummeting EUR vis-@-vis the US dollar and the spillover effect of Greece's debt crisis on the Euro-zone," El-Fzei' pointed out.
"The prices were also affected by the data of the oil inventories in the most industrialized economies which have oil stocks sufficient for 61 days, 7-8 days above the record levels.
"The well-supplied market suffers from the wavering confidence of consumers in the major economies, which prompted consumers to abstain from using oil to save more money," she said.
Nevertheless, demand on oil is likely to grow and consumer confidence to recover after the Euro's key EU partners came to EUR-multibillion bailout package for Greece and at the advent of fall when demand for gasoline and heating oil grows.
"There are positive signals that started to show up and herald world economic recovery including the upbeat outlook of the US economy and the high economic growth rates in China," El-Fzei' said.
The Organization of the Petroleum Exporting Countries (OPEC) keeps a close watch on the market and will step in to protect the interests of the producers if the wavering tendency persists, she predicts.
El-Fzei' noted that the oil ministers of the OPEC member states were unanimous on the fact that a fair price should range between USD 70 and 80 a barrel. - Kuna