Visiting United Arab Emirates (UAE) Energy Minister Mohammed Al Hamili said in Kuwait City Saturday that current oil prices are fair and should be a bit lower because there is no shortage in supplies.

The minister was quoted by Kuwait's official KUNA news agency as saying that fair price of oil is dependent upon supply and demand in global market, 50 US dollars per barrel is a reasonable price for the OPEC's oil basket.

He said that oil production will not be decreased because the market is well supplied and the balance of current production levels will continue throughout 2005 to 2006.

The UAE was supporting renewal of the OPEC's decision to supply 2 million barrels per day over current output if necessary, he added.

Hamili arrived here earlier in the day to attend the OPEC's ministerial meeting due on Monday.

The UAE currently produces 2.44 million barrels of oil per day, the oil-rich country earned 30.2 billion dollars in oil revenues in 2004 and expects to get 39 billion dollars in 2005.

Source: Xinhua