Worst in energy markets is over as crude prices rise: UAE minister

The worst was over in the energy markets following the rebound of crude prices from below 30 U.S. dollars per barrel to around 45 to 50 dollars, the United Arab Emirates (UAE) energy minister said on Monday.

"The era of oversupply will go away," UAE Minister of Energy Suhail Al-Mazrouei told an annual international petroleum conference in Abu Dhabi.

In mid-2014, the crude oil traded at 110 dollars per barrel.

He noted a significant drop in the number of projects since the drop in crude prices two years ago.

"At least 45 billion dollars worth of projects which were planned to come on stream in 2016 have been halted," the UAE minister said.

The UAE, a major oil supplier, boasts approximately 7 percent of the world's crude oil reserves, according to the International Energy Agency.

"Throughout history we have seen that the oil industry and oil exporting countries have emerged after any downturn stronger," he added.

Al-Mazrouei said that the current downturn has motivated the oil states and energy firms to invest into new technologies.

Earlier, the International Monetary Fund (IMF) said the financial pressure on the Gulf Arab countries has eased as a result of the recent rally in oil prices.

Saudi Arabia, the biggest Gulf Arab economy, is expected to post a 1.2 percent growth in 2016 and 2 percent in 2017, while the UAE will grow 2.3 percent and 2.5 percent respectively, according to an IMF report released in mid-October.

However, the IMF also warned the Gulf Arab governments against widening budget deficits, urging them to further cut spending, reduce subsidies and diversify their economies away from oil. Endit