The UAE plans to build a new oil refinery with a capacity of 300,000 barrels per day (bpd) in the Gulf Opec producer, Oil Minister Mohammed Al Hamli said.

He also said world oil markets were well supplied and that stock levels were higher than their averages in recent years.
"A new refinery is planned to be built at Fujairah with a capacity to process 300,000 bpd of crude oil," Hamli said.
He said the UAE also planned expansion at existing plants but gave no details.
In October a UAE newspaper had reported that Abu Dhabi plans to build a 300,000 bpd refinery in Fujairah – which is becoming a major bunkering hub – with an investment of $4 billion.
Hamli also said the UAE would increase its oil production capacity to more than 3.5 million bpd in the "next few years" through investments in upstream projects.
The UAE is producing at a rate of around 2.5 million bpd and plans to add 200,000 bpd by the end of 2005 or beginning 2006.
The head of state oil firm Abu Dhabi National Oil Co, Yousef Omair Bin Yousef, said in May that Abu Dhabi, the UAE's main oil producer, plans to raise output capacity to three million bpd within three to five years to ease concerns over global oil supplies.
"It is evident that the market is well supplied with crude oil and stock levels are higher than their averages in recent years in most major consuming nations," Hamli said.
He said the rise in oil prices, which hit a record of over $70 in August, was due to refining bottlenecks, speculation, market fear of diminishing spare capacity in some major producing nations and instability in some oil producing regions.
The UAE plans to boost its oil refining capacity, Hamli said.
The emirate will be able to produce 2.7 million barrels per day (bpd) of crude oil early next year, he said.
"Certainly we are adding new refining capacity and it is in our mind. We are undertaking studies regarding this," he said.
But he said new crude production capacity will come onstream shortly that will lift the UAE's production capacity to 2.7 million bpd.