Saudi oil min­is­ter says OPEC pro­duc­tion cut ‘im­per­a­tive’

Kuwait Times - - BUSINESS -

AL­GIERS:

Saudi Ara­bia’s oil min­is­ter said it was “im­per­a­tive” that OPEC na­tions fi­nalise an agree­ment over a cut in oil pro­duc­tion aimed at boost­ing crude prices, Al­ge­rian me­dia said yes­ter­day.

Khalid Al-Falih met his Al­ge­rian coun­ter­part Noured­dine Boutarfa yes­ter­day and called on car­tel mem­bers to stick to the sur­prise cut deal, reached in Al­giers in Septem­ber. “In this pe­riod marked by un­sta­ble oil prices it is im­per­a­tive to reach a con­sen­sus be­tween OPEC na­tions and to agree on an ef­fec­tive mech­a­nism and pre­cise fig­ures to ac­ti­vate the his­toric Al­giers ac­cord,” Falih was quoted as say­ing by Al­ge­ria’s APS news agency. The Septem­ber meet­ing of OPEC mem­bers pro­duced an agree­ment to cut the car­tel’s out­put by 750,000 bar­rels per day (bpd), ac­cord­ing to Bloomberg News.

Oil rose on news of the deal, but crude prices are still more than 50 per­cent lower than their mid-2014 lev­els. Falih said he was “op­ti­mistic” that the agree­ment would come into ef­fect.

The Saudi min­is­ter was quoted as say­ing that a “fair and bal­anced” out­put deal would al­low un­rest-hit Libya and Nige­ria, with a re­turn of se­cu­rity, to raise pro­duc­tion, while reach­ing agree­ment with Iran on a freeze. Falih and his Al­ge­rian coun­ter­part Boutarfa called for the date an OPEC prepara­tory meet­ing of ex­perts ahead of the Vi­enna con­fer­ence to be brought for­ward to Novem­ber 21 from its sched­uled date of Novem­ber 25, APS re­ported.

OPEC of­fi­cials said in Septem­ber that the group would aim for a com­bined out­put of 32.5-33 mil­lion bpd. On Fri­day, how­ever, prices fell on news from OPEC that it had pumped oil in Oc­to­ber at record lev­els of 33.64 mil­lion bpd, 236,000 bar­rels per day more than the pre­vi­ous month.

Iran opened three oil­fields with a to­tal pro­duc­tion of more than 220,000 bar­rels per day (bpd) yes­ter­day, as the country ramps up its pro­duc­tion af­ter the lift­ing of sanc­tions. Pres­i­dent Has­san Rouhani of­fi­cially launched the first phases of the Ya­davaran and North Azade­gan fields as well as the the North Yaran field, which are shared with neigh­bor­ing Iraq, the Ira­nian oil min­istry’s news agency SHANA re­ported.

Ya­davaran will have a pro­duc­tion of up to 115,000 bpd in its first phase and North Azade­gan’s out­put is 75,000 bpd, SHANA said. North Yaran will ini­tially pro­duce 30,000 bpd, the news agency re­ported last week. —Reuters

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