Kuwait City, May 26: Market sentiment and not fundamentals are driving price volatility in the international oil market, Kuwait’s oil minister said on Wednesday.
“Market sentiment, not fundamentals,” Sheikh Ahmad Abdullah al-Sabah told reporters when asked what is behind recent oil price volatility.
“Look at what happened to the euro and the strength of the dollar, of course.”
Oil prices have fluctuated sharply, dropping to well below 70 dollars a barrel on Tuesday, a few weeks after hitting almost 90 dollars. The eurozone debt crisis and its impact on the euro and the dollar has been blamed for the swings.
Oil prices rebounded in Asian trade Wednesday, taking their lead from strong performances in regional stock markets.
New York’s main futures contract, light sweet crude for delivery in July, gained 78 cents to 69.53 dollars a barrel.
Brent North Sea crude for July delivery advanced 31 cents to 69.86 dollars.
The Kuwaiti minister said OPEC will continue watching movements in the oil market, but ruled out the need for an emergency meeting now.
“The bell is not ringing yet,” he said.
Sheikh Ahmad, whose country is OPEC’s fifth-largest producer, rejected considering a price of 65 dollars a barrel as a “floor” for OPEC to act.
“No. This will (only) draw our attention,” he said.
—Agencies