OPEC + could reconsider increasing production, Kuwaiti oil minister says

KUWAIT, Aug.29 (Reuters) – The increase in oil production agreed to last month by OPEC + countries could be reconsidered at its next meeting on September 1, Kuwait’s petroleum minister said on Sunday.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, collectively known as OPEC +, will meet on Wednesday to discuss the previously agreed increase of 400,000 barrels per day (bpd) for next months.

“Markets are slowing. As COVID-19 has entered its fourth wave in some areas, we need to be careful and reconsider this increase. There could be a halt to the increase of 400,000 (bpd),” Mohammad said. Abdulatif al-Fares on Reuters behind the scenes at a government sponsored event in Kuwait.

The economies of East Asian countries and China remain affected by COVID-19 and caution should be exercised, Fares added.

The administration of US President Joe Biden has urged OPEC and its allies to increase oil production to deal with rising gasoline prices that it sees as a threat to global economic recovery. Read more

When asked about the US appeal, Fares said OPEC + members had different views on the issue.

“There are meetings with the OPEC countries, especially the Gulf Cooperation Council countries, and so far there are different views on how to handle this issue,” said Fares.

Last year, OPEC + implemented a record production cut of 10 million bpd, equivalent to about 10% of global demand, when energy demand plunged due to travel restrictions and blockages national governments to counter the spread of COVID-19.

Writing by Aziz El Yaakoubi Editing by David Goodman

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