Qabazard said that the OPEC agreement on production cuts in December 2008 “successfully prevented the oil price from falling and supported its rise to a more reasonable level seen so far. But only with the full support of other parties in the oil industry can these measures be truly successful. He said that the stability of the oil market is a major goal of OPEC. "This year's oil market outlook has continued to improve."
However, the activities of the oil market may jeopardize the stability of the market and combat the dependence of oil-producing countries on the economic revenue of oil. He said: “Speculators' net longs have reached a record high. At present, some countries are still studying measures to supervise the market, and it is understandable that the above situation will trigger a new round of market fluctuations.†Qabazard later told Platts, The net long held by speculators and fund managers in the US oil futures market two weeks ago has risen to the record level of 185 million contracts, which is equivalent to about 19 times the exchange's spot trading volume. He said that the net long position has fallen since then, but the long sell-off is a factor that causes oil price fluctuations.
He said, “Overall, the market believes that [current] oil prices are acceptable†and provide reasonable returns for reinvestment in the oil industry. “For the consumer countries, oil prices can be sustained without negative impact on growth.†Qabazard said that although the oil market is “more stableâ€, there is still no reason to be satisfied. Qabazard said: “There are still concerns about the level of public debt of OECD countries, the high unemployment rate and the risk of China’s economic downturn. He pointed out that these factors “might pose a threat to market stability†and may exaggerate the normal normal market changes.
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