Shell CEO Peter Voser has added his voice to the chorus of doubt over OPEC’s ability to temper oil prices that remain stubbornly high, despite economic turmoil in the US and Europe and a slowdown in the rate of growth in key developing Asian economies.
Voser, speaking in an interview on Reuter Television, said oil prices are holding strong because the market believes OPEC spare capacity is eroding fast and has probably fallen below 2 million barrels per day.
“It [oil price] reflects the expectations that demand will go up and supply will remain in a catch up mode. It also reflects that OPEC spare capacity is now below 2 million barrels [per day], according to the latest numbers,” Voser said.
Voser was also skeptical about the impact of the IEA’s recent strategic intervention in oil markets, saying he doubted the IEA stocks release would bring any long-term relief to global oil markets.
“I don’t believe in these measures,” Voser said. “These are very short-term measures and do not bring any medium and long-term benefits.”
Shell has announced that its Q2 profits of $8 billion were 77% higher this year than in 2010.
