DOHA Feb 8 Higher oil prices may boost shale
oil production but the global oil market can accommodate this as
demand remains healthy, Qatar's energy minister said on
"The market is gradually accommodating for shale oil as well
as shale gas - the demand is healthy. With that continuous
demand increase I think all available oils are going to be
accommodated," Mohammed al-Sada told Reuters in Doha.
He said current oil prices made the development of most
oilfields around the world unviable.
OPEC and non-OPEC producers agreed late last year to cut
crude production by a total of 1.8 million barrels per day to
help reduce a supply glut that had depressed prices.
Sada said it was too early to say whether it would be
necessary to extend the pact beyond June, but a drop in
inventories had started - a key indicator OPEC is monitoring to
decide whether the deal is enough to balance the market.
"All indications show we are heading in the right direction
and the drop in supply started in a very concrete way. That will
give us a sort of comfort that the gradual drop (in inventories)
towards the five year average will be clearer down the road," he
(Reporting by Rania El Gamal and Tom Finn; Editing by Mark