CAIRO, March 6 (KUNA) -- Egyptian Minister of Petroleum Sameh Fahmi said here on Friday that the global financial crisis has negatively affected the global oil industry and imposed significant challenges to producing countries, leading to a sharp decline in oil prices.
In a statement to reporters, Fahmi pointed to investments being affected by the crisis which led to the delay and slowing down of many projects, in addition to the cancellation of some due to the increase in the credit tightening in conjunction with the collapse of oil prices.
He predicted a decline in the outlook for global demand for oil due to the effects of sustained world economic growth rates, in addition to the increase of capital cost index of oil projects, thus, leading to a reduction in production capacities at the global level which would be an obstacle once the global economy has recovered and the growth in demand for oil has resumed.
Copyright Kuwait News Agency 2009.
