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Qatar Oil Minister: High Price Due To Geopolitics, Not Shortage

Crude oil prices, which have rebounded to September highs, are mostly supported by geopolitics, not tight crude oil inventories, Qatari Oil Minister Abdullah bin Hamad al-Attiyah said Sunday.

“We have no indication of any shortage of supply,” Attiyah said in a telephone interview. He added, therefore, there isn’t any reason for OPEC to meet soon to review its oil output policy.

The International Energy Agency, the energy watchdog for the major industrialized nations, estimates the OPEC restraints have caused an unusually large decline in first-quarter oil stockpiles and said that OPEC’s next move will need to be a decision to increase supply.

In March, OPEC agreed to keep its current output restraints in place until the group meets again on Sept. 11. Some market analysts said OPEC will likely have to act before then as strong summer demand is expected to boost oil prices and tighten inventories further.

Qatar’s Attiyah said, though, he believes OPEC can wait until its scheduled September meeting to review its output policy.

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