Qatar says oil market well supplied, EU crisis a worry

The global oil market is well supplied but European debt problems are a big concern for producers, Qatar’s energy Minister Mohammed Saleh al-Sada said on Sunday. "Supply is at a good standing. Demand will continue to be affected by economic growth internationally," Al Sada told reporters on the sidelines of a conference in Doha.

"We are watching closely developments on supply and demand. It is evident that the emphasis is now on the financial issues in some European countries."

The Organisation of the Petroleum Exporting Countries, of which Qatar is a member, cut its global oil demand forecast in early September. But OPEC Secretary General Abdullah al-Badri said demand did not look weak enough last week for OPEC to act to limit supply.

Saudi Arabia and its Gulf OPEC allies – who argued at the latest OPEC meeting in June that more oil was needed to make up for the shutdown of Libyan fields – raised production after failing to convince other members to agree to a co-ordinated increase.

Qatar, a major gas exporter but minor oil producer, increased its output from 731,000 barrels per day (bpd) in May to 755,000 bpd in June, but cut to 731,000 bpd again in July, according to the latest official data published by the Joint Data Initiative