Business | Oil & Gas
Qatar says low oil price threatens Middle East economies
The drop in oil prices is reducing income in the Middle East and threatening the economic stability of producing countries, Qatar’s oil minister said on Sunday.
- Bloomberg
- Published: 10:13 April 26, 2009
Tokyo: The drop in oil prices is reducing income in the Middle East and threatening the economic stability of producing countries, Qatar's oil minister said on Sunday.
"For the first time in a quarter century, world demand for oil is falling; the price has collapsed since July 2008," Abdulla Bin Hamad Al Attiyah said at the Asia Ministerial Energy Roundtable in Tokyo.
"Companies almost everywhere are freezing investment and re-evaluating energy projects based on high prices," he said.
The number of oil and gas rigs operating worldwide has plunged 34 per cent since September following the drop in prices, according to data published by Baker Hughes Inc.
The oil and gas market presents a "high-level risk" to investors in projects, Al Attiyah said, and governments must frame policies to help protect their investments.
"Low prices and the resulting drop in income of producing countries is creating problems for their economic stability and investment in additional capacities essential for the future," he said. "The illiquidity of global financial markets is also making it difficult for companies to invest, even in high-return projects."
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