DAVOS, (Reuters) – UAE’s Oil Minister Mohammed al-Hamli said on Thursday that the market was well supplied and high prices were mainly driven by traders and the cold weather.

“I still think the market is well supplied, and prices are driven by this cold weather and trader buying,” he told Reuters.

Al-Hamli said OPEC had enough spare capacity to meet growing global demand if needed.

“Demand is growing but for the time being we do have the spare capacity to meet it if necessary,” he said. Asked if OPEC was likely to increase its production this year, al-Hamili declined to comment.

He said the UAE was still producing within its quota.

However high oil prices were a factor encouraging some OPEC members to overproduce, he said. “Overall there is under compliance and this high price is helping it.”

OPEC is due to meet in June, and ministers from member states have said that there was no sign of an extraordinary meeting coming up, which al-Hamli agreed with. “We are now just monitoring the market closely,” he said.