Kuwait: OPEC May Discuss Extending Oil Cut Deal In June

Remigio Civitarese
Aprile 17, 2018

OPEC, which along with 10 non-OPEC allies led by Russian Federation, is in the midst of a 1.8 million b/d production cut agreement, aimed at drawing down crude oil inventory levels and creating market stability, so that upstream investment can occur to meet the projected increases in demand. This trend was expected to continue in the coming months, he added.

Kuwait's Oil Minister Bakheet al Rashidi said he believes that oil producers were on the right path to restore stability to the oil market.

OPEC and partners will discuss an initial draft of a longer-term cooperation framework at their meeting in June, Barkindo said last week.

The latest OPEC estimates peg the OECD stocks at 43 million barrels above the five-year average as of end-February, while the International Energy Agency (IEA) said in its latest report that OECD commercial inventories were just 30 million barrels above the five-year average at end-February, and that it looks very much like OPEC is close to achieving its mission.

OPEC members' commitment to the oil output cut agreement, which began in January 2017, has helped bring back investment and contributed significantly to the recovery of oil markets and prices, he noted.

A "new chapter is being authored" by OPEC and non-OPEC producers to continue cooperation, he said.

The joint ministerial committee of OPEC and non-OPEC ministers, which monitors compliance to production cuts, meets in Jeddah, Saudi Arabia on Friday to review adherence and discuss long-term cooperation.

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