DOHA, Qatar (AP) – The oil market is slowly recovering from its steep drop over the past two years but crude is still not trading at a “fair price” to encourage necessary investment, Qatar’s energy and industry minister said Tuesday, ahead of next week’s meeting of OPEC producers.
Speaking to The Associated Press from his high-rise office in the capital, Doha, Mohammed bin Saleh al-Sada said a minimum price of $65 a barrel is “badly needed at the moment.” He cautioned that the security of future supplies is as risk because of the price slump that has squeezed oil producers since 2014.
“The oil market is recovering slowly but steadily. Luckily, the fundamentals show it is heading in the right direction,” al-Sada said. “I don’t think we are yet at a fair price. We need to have a fairer price so that we can have the ability to invest more in order to secure the energy supply to the world and avoid any price shock.”
In the interview, al-Sada did not rule out reviving talks of a freeze in production among major producers after similar negotiations collapsed in Doha last month. He currently serves as president of the 13-memeber OPEC.
“Nothing actually is canceled but we are reacting to the parameters of the market,” he said. “If OPEC and non-OPEC major producers think that the revival of it is necessary, it’s all open and on the table all the time.”