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Shell CEO and OPEC see no oil shortages today

 

Reuters UK

Shell CEO and OPEC see no oil shortages today

Mon Jun 2, 2008 9:27am BST

KUALA LUMPUR (Reuters) – Royal Dutch Shell Chief Executive Jeroen van der Veer said on Monday he did not see any shortage of physical oil supplies, echoing the view of many OPEC ministers who say the world market is well supplied.

 

“There are no physical shortages in the world. We don’t have ships waiting in the Middle East, no people queuing up for gasoline,” Van der Veer told reporters in the Malaysian capital, where he was briefing on Shell’s Asian business plan.

“From a stocks point of view the whole value chain works well… It (the price) has a lot to do with psychology.”

Oil prices have risen more than fourfold since 2004 and gained more than 30 percent this year alone, partly on increased fears among investors that producers will struggle to produce enough oil to meet demand in a decade’s time.

U.S. crude prices hit a record high of $135.09 a barrel last month before retreating to $126.37 on Monday.

Ministers from the Organisation of the Petroleum Exporting Countries have consistently blamed the falling U.S. dollar, geopolitical tensions and other factors beyond their control for the spike in prices.

Most recently U.S. politicians have put presure on regulators to stem the influx of investment funds into the market.

“Oil prices, like many other commodities group, have relatively high volatility. That is difficult to manage.”

(Reporting by Chua Baizhen; Editing by Jonathan Leff and Ramthan Hussain)

 

 

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