Opec will take appropriate measures not only to stabilise oil prices but ensure that there will be adequate supply of crude oil in the light of the terror attacks in the U.S., Obaid bin Saif Al Nasiri, Minister for Petroleum and Mineral Resources, said yesterday.

The minister disclosed that the UAE's oil reserves stand at 89 billion barrels at present while natural gas reserves are 6 trillion cubic metres.

"If the price of oil continues to remain above $30 a barrel during our meeting, Opec will concentrate on taking appropriate measures to stabilise the market at an appropriate level," Nasiri told Gulf News after his address at the Zayed Centre for Coordination and Follow-Up.
Opec ministers are meeting on September 26 in Vienna.

Stating that there were no indications of panic buying after the terror attacks in the U.S., the minister said there was enough supply in the market. "Before the incident, there was a slowdown and prices were heading lower. What happened on Tuesday pushed the price up," he said, adding: "It depends on how the incident cools down for prices to get back to normal."

Opec is trying to maintain the $25 per barrel average Opec basket target.

Abdullah bin Hamad Al Attiyah, Qatari oil minister, earlier this week said Opec may not increase production as the markets and prices were stabilising.

In his address, Nasiri, noted that oil prices are affected not only by market variables of demand and supply but also by other factors such as speculation, rumour, declarations and world events such as the weather and political stability.

The minister said total output cuts by Opec this year amounted to 3.5 million barrels per day compared to last year's increase of 3.7 million. The third cut this year was of one million bpd on July 25.

Referring to the UAE's energy sector, he said oil reserves have risen from 30 billion barrels in the 1970s to 89 billion barrels at present, and natural gas reserves have jumped from 626 billion cubic metres to six trillion cubic metres.

"Oil production also witnessed a significant expansion. While production rate did not exceed 800,000 bpd in 1970, it averages more than 2 million bpd currently. Production of natural gas has gone up from 9 bcm during the late 1970s to 39 bcm at present."

The minister said this year, a new geological and geophysical survey has begun involving geological and tectonic maps, and international specialised firms will undertake this project, expected to be completed within four years.

"The project aims at locating raw minerals and hydrocarbon deposits (oil or gas) that can be used for industrial and commercial purposes," he said, adding that the project also aims at utilising the geological and tectonic maps to decide the location of stations for monitoring earthquakes and locating fresh ground water.