OPEC chief hails Amir’s role for stable market
Oman, Kuwait urge oil producers to pursue cooperation
KUWAIT CITY, April 16, (Agencies): Barkindo, addressing Kuwait Fifth Oil and Gas Conference, revealed that he requested a meeting with His Highness during the oil market crisis in 2016, “and explained to His Highness what was happening on the international markets, soliciting his help to restore stability to the markets.
“I had asked His Highness to aid in restoring confidence in OPEC and he promised me that the State of Kuwait would play a mediation role among the (concerned) states and that he would talk with his friends; the kings and presidents, to resolve the crisis.
“The next time I returned to Kuwait His Highness had already honored his promise and asked me whether I was pleased and I replied that all were happy for His Highness’ efforts that resulted in inking the accord on cutting the output by OPEC and non-OPEC states.
Omani and Kuwaiti oil ministers on Monday called on OPEC and nonOPEC producers to continue their unprecedented cooperation to maintain stability in the energy market.
Producers from the OPEC oil cartel and non-OPEC countries struck a deal in 2016 to trim production by 1.8 million barrels per day to rebalance the market after its collapse in 2014.
The deal, which runs out at the end of this year, has succeeded in boosting oil prices above $70 a barrel from below $30 a barrel in early 2016.
“I call for the signatories of the (cooperation) declaration agreement, those 24 nations from OPEC and nonOPEC, to continue the dialogue, the understanding and commitment in maintaining the market conditions that will encourage investment,” Omani Oil Minister Mohamed al-Rumhi told an oil conference in Kuwait.
He also called for enhancing “collaboration and work together to ensure security of supply for consumers and security of demand for producers”.
Kuwait’s Oil Minister Bakheet alRasheedi said he believes that oil producers were on the right path to restore stability to the oil market.
“A year ago, there was a surplus of 340 million barrels of oil. At the end of February, the surplus dropped to 50 million barrels and we believe we are on the right path to get rid of this surplus,” Rasheedi told reporters.
He said that the OPEC and nonOPEC cooperation will be reviewed at an OPEC meeting in June.
“Market conditions will determine whether the deal will be extended beyond 2018 or arrive at a permanent agreement... to support the market on a long-term basis,” he said.
OPEC kingpin Saudi Arabia, the United Arab Emirates and several other countries have called for striking a long-term cooperation deal to stabilise the oil market. OPEC secretary-general Mohammad Sanusi Barkindo told the Kuwait conference that the 2016 deal achieved a great success in overcoming the “worst cycle in the history of oil”.
A “new chapter is being authored” by OPEC and non-OPEC producers to continue cooperation, he said.
“In the months ahead, we will look to institutionalise this long-term framework for continuity with an inclusive and broad-based participation,” Barkindo 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.
Kuwait aims to increase its oil and gas production and reserves through
acquisitions of assets abroad as well as expanding its exploration efforts at home, the head of Kuwait Petroleum Corp said on Monday.
KPC’s Chief Executive Officer Nizar al-Adsani also said that while Asia would remain the focus for Kuwaiti oil exports, the national oil company was also keeping an eye on the African market for possible acquisitions. “We have started working with financial institutions to achieve strategic partnerships to find the optimum solutions to finance our current and future projects,” Adsani told a news conference in Kuwait City.