European debt problems and the prospect of weaker demand in parts of Asia are a big worry for producers, he said.

"We need to keep a close on demand... (but) I am not predicting a major demand slump," he told the Middle East Petroleum and Gas conference in Dubai, delivering a speech for UAE Oil Minister Mohammed bin Dhaen al-Hamli.

The OPEC governor of one of the world's largest oil exporting countries said the UAE is monitoring demand closely in Asia after an analyst report pointed to a possible slowdown in industrial activity in parts of Asia over the last few months.

It is still unclear whether those falls are seasonal or due to structural factors, he said.

The UAE was among a group of Gulf OPEC producers to up production over the last few months to help meet global demand for oil.

OPEC rivals Saudi Arabia and Iran were in rare agreement over the weekend that the global oil market is balanced after oil prices slumped on Friday on renewed global economic worries.

Benchmark Brent crude oil prices fell another 1.3 percent to around $101.40/barrel early on Monday.