OPEC can make up for the loss of any crude production from Libya, Qatari Oil Minister Mohammed Saleh Al Sada said, after prices surged last week to a two-year high.
Al Sada told reporters in Doha today there is no shortage in oil supply. Concern that political upheaval in North Africa and the Middle East would disrupt supplies drove the price of crude to $103.41 a barrel last week, the highest level since September 2008. Libya holds the largest proven oil reserves in Africa.
Al Sada’s comments echoed those of a Saudi Arabian oil official, who said on Feb. 24 there was no reason for oil prices to rise because Saudi Arabia and the Organization of Petroleum Exporting Countries wouldn’t allow shortages to exist. Qatar and Libya are among the 12 members of OPEC, which pumps about 40 percent of the world’s oil. Saudi Arabia is the group’s largest and most influential member.
Saudi Arabia is going to get hit with these revolutions and they are horribly afraid of it, especially since 90% of the oil production comes from the Shia dominated East.
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