Seoul: Saudi Arabian oil minister Ali al-Naimi today blamed financial market volatility for triggering the rise in global oil prices in the recent past, in a prepared speech in Seoul, where he is due to receive an honorary degree from Seoul National University.  He said short-term oil price fluctuations seen in recent years are "more closely tied to the internal logic of the financial markets than to underlying supply / demand fundamentals."

He allso emphasised that the supply outlook remained bright, in response to the demand from consumer nations who have been calling on oil producers to raise production to ease the rise in prices.

Naimi also stated that global economies were more energy efficient today than atr any time in history. "From the perspective of oil and gas resource endowment, the picture is different from what the resource pessimists paint,"  the minister's satement said pointing out that proven global oil reserves have risen from 667 billion in 1980 to 1.2 trillion barrels now, even though the world has consumed some 700 billion barrels in the interim, he said.

OPEC oil ministers have routinely withstood these pressures saying the markets are well stocked with stable supplies, and that prices have risen to factors beyond their control such as increased speculative trading and weakening of US dollar.

Naimi said that rapid economic growth in Asia was expected to raise oil consumption in the region by 20 million barrels per day, accounting for 60 per cent of the expected increase in global oil demand by 2030.

US oil prices eased below $124 a barrel today on Iran's assurance not to restrict exports.