Opec producers should boost supply next year to keep up with rising global demand for crude oil, the United Arab Emirates' oil minister said in remarks published on Sunday.
"Forecasts for 2006 show that global demand for oil will rise by 1.5 million barrels per day and that growth in non-Opec production will retreat, which necessitates that Opec increase supplies to balance supply with demand," Energy Minister Mohammed bin Dhaen al-Hamli told Kuwaiti daily al Qabas.
But Hamli said the oil market was glutted and there was no need for the Organisation of the Petroleum Exporting Countries to increase production now. The cartel meets in Kuwait on December 12 to chart output policy.
"The oil market is satiated with crude oil currently and there is no shortage of supplies and prices have fallen recently compared with the past few months," Hamli was quoted saying.
"It is not reasonable to hike production during this period and besides Opec has put 2 million barrels (per day) at the market's disposal," he added.
Hamli also told al Qabas that a reasonable price for oil is between $40 and $50 per barrel in the near term, adding that he was not worried about an oil price decline next year. "It is difficult to place a specific number for the future but in the near term a reasonable price is $40 to $50," he said, responding to a question that on some forecasts that prices may fall sharply next year to between $20 and $35 a barrel.
"Frankly, these expectations are too pessimistic," he said.
It was not clear if Hamli was talking about US crude or the Opec basket.