Kuwait’s governor to the Organisation of Petroleum Exporting Countries (OPEC) announced that the promise made last year to stabilize the market by oil producers is currently being implemented. Oil producers from Saudi Arabia to the UAE are currently working in line with the promise.
Nawal Al Fezaia, Kuwait’s OPEC governor said in an interview on Monday that Qatar, Oman and Kuwait are also in compliance and have announced cuts to customers. Mohammad Barkindo (Opec’s Secretary General) is scheduled to have talks on the cuts with Kuwait Oil Minister Essam Al Marzouk and other officials.
However, OPEC and crude producers outside the group (Russia inclusive) are also currently applying a production cut of about 1.8 million barrels a day. This comes at a time after crude prices slumped from more than $100 (Dh367.3) a barrel since 2014. Amid oversupply and as a result of conflict, Nigeria and Libya are excluded from the cuts. Bret crude has changed a little at $56.84 a barrel.
“It’s a good time to do maintenance on oilfields during production cuts. Kuwait will be producing 2.7 million barrels a day by the end of the month, she said. That compares with 2.89 million barrels a day in December, according to data compiled by Bloomberg. Most of the cuts have affected Kuwait’s crude exports, and all other OPEC nations will probably do the same to meet local demand” Al Fezaia said.
Libya and Nigeria need more time in order to boost their production before they could join the group. “Once both these countries resume full production capacity, we will review this,” Al Fezaia said.