Limiting oil production improved markets in 2017: Kuwaiti oil minister
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.