Oil prices are reflecting fundamentals of demand and supply and the current prices of $105 to $110 are considered good in light of the circumstances in some producing countries in the region and beyond, the Minister of Energy Mohammed Dhaen Al Hamli said.
"New discoveries in America and the future reserves have direct impact on oil prices, on the short term and not on the long term. I expect prices in 2013 to be similar to prices in 2012," Al Hamli said in statements to Abu Dhabi TV on the sidelines of a ceremony to sign an energy agreement with Turkey.
Speaking on demand on oil, the minister said "the world continues to suffer from the economic crisis which has been ongoing for five years now. I expect that demand on energy will go down to below the levels of last year, relatively. Maybe, there will be some stability in demand and, therefore, prices will stand at the same level, due to some factors which are beyond market fundamentals, such as the problems in producing countries. This has direct impact on energy prices."