Lim­it­ing oil pro­duc­tion im­proved mar­kets in 2017: Kuwaiti oil min­is­ter

Kuwait Times - - LOCAL -

The joint min­is­te­rial com­mit­tee on mon­i­tor­ing world oil mar­ket has seen vi­tal achieve­ments in lim­it­ing pro­duc­tion this year, said head of the com­mit­tee Es­sam Al-Mar­zouq. In his speech at the com­mit­tee’s meet­ing in Saint Peters­burg yes­ter­day, Mar­zouq; Kuwait’s Min­is­ter of Oil and Min­is­ter of Elec­tric­ity and Wa­ter, hailed the com­mit­ment of all coun­tries to the oil pro­duc­tion cut agree­ment to keep sta­ble the oil mar­ket.

The agree­ment re­duced the rate of oil re­serve down to 90 mil­lion bar­rels in 2017, Mar­zouq noted. He added that some coun­tries went be­low the pro­duc­tion rate agreed upon; a step much ap­pre­ci­ated by the com­mit­tee, ac­cord­ing to him.

Mean­while, the min­is­ter noted that de­spite the lim­it­ing pro­ce­dures, the re­serve rate in oil con­sum­ing coun­tries still ex­ceeded de­mand by 250 mil­lion bar­rels. Coun­tries need to ex­ert fur­ther ef­forts in ex­e­cut­ing the terms of the nine-month deal in or­der to keep prices sta­ble, he said. Mar­zouq also noted that de­mand on oil is ex­pected to reach about two mil­lion bar­rels daily in Q3 and Q4 of 2017.

In the mean­time, Rus­sian Min­is­ter of En­ergy Alexan­der Novak said that com­mit­ting to the lim­it­ing deal led to an in­crease of in­vest­ments in oil in­dus­tries. In Novem­ber 2016, OPEC mem­bers con­cluded a deal in Vi­enna to cut pro­duc­tion by around 1.2 mil­lion bar­rels per day (bpd), or over three per­cent, to 32.5 mil­lion bpd. Non-OPEC pro­duc­ers vol­un­tar­ily de­cided to re­duce out­put by 600,000 bpd. Rus­sia alone made a 300,000-bpd-cut.

SAINT PETERS­BURG: Kuwait’s Oil Min­is­ter Es­sam Al-Mar­zouq at­tends the joint min­is­te­rial com­mit­tee on mon­i­tor­ing world oil mar­ket meet­ing in Saint Peters­burg.

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