LOC16:57
13:57 GMT
KUWAIT, Nov 2 (KUNA) -- A Kuwaiti expert on oil expects that the global
financial downturn will not lead to a crash in oil prices around the world.
Former Chief Executive in the Kuwait Petroleum Corporation (KPC) Hani
Hussain said that the fundamentals of the global supply and demand of oil will
protect the market from any unexpected collapse.
On the recent drop in oil prices, Hussain mentioned that speculators were
largely responsible for the previously witnessed rise, which vanished after
their absence affected by supply and demand and market needs.
He said that on the mid-term scale, he objectively viewed that supply will
be less than demand which will in-turn create a balance in prices.
On the financial crisis and predicted state of recession in larger oil
consuming countries, Hussain said that the state will affect consumption but
not to a large degree, particularly in countries like India and China who have
evidently witnessed a rise in oil consumption over the past few years as a
result of economic growth.
In the meanwhile, regarding Arab Gulf states being affected by the price
decrease, he said that "there is no doubt they will be affected especially
after prices have plunged by more than 50 percent to what they were in July,
although the drop has to come to an end at some time or another." (end)
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KUNA 021657 Nov 08NNNN