Shrinking Crude Surplus Seen by Abu Dhabi Propping Oil Rally

  • Surplus has contracted ‘faster than expected’: Mansoori
  • Abu Dhabi’s Ali Majed Al Mansoori interviewed on Bloomberg TV

Abu Dhabi's Al Mansoori: Oil Can Reach $60

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The global oil surplus is shrinking faster than expected and has the potential to send crude prices as high as $60 a barrel this year, according to Ali Majed Al Mansoori, chairman of the Abu Dhabi Department of Economic Development.

The surplus is down to 1.2 million to 1.5 million barrels a day and has “contracted faster than expected,” Mansoori said in a Bloomberg TV interview from Abu Dhabi, the capital of the United Arab Emirates. The IEA said last month that supply will exceed demand by an average of 1.3 million barrels a day in the first half of this year, and boosted its forecast for world demand by 100,000 barrels a day to 95.9 million barrels a day.