Kuwait confirms its commitment to implement the agreement to reduce oil production

Kuwait confirms its commitment to implement the agreement to reduce oil production

Brent's reverse and rises slightly

London: "Middle East"

KUWAIT – Kuwait is fully engaged in the implementation of the OPEC + agreement to reduce production to boost crude oil prices, the Kuwaiti Minister of Petroleum said on Monday. He added that his country has reduced its production more than required by this agreement.
"Kuwait's commitment to implement the agreement to reduce production (…) reached about 160% last July," he said.
He said exaggerated concerns over the global economic slowdown, which was putting downward pressure on prices, and that global demand for oil would resume in the second half of the year, which would help to gradually reduce excess stocks of crude oil.
The Organization of Petroleum Exporting Countries (OPEC), Russia and other non-OPEC producers, the group known as OPEC +, have agreed to reduce their production of 1.2 million barrels per day (bpd) as of January 1 as part of an agreement to prevent the rise in global stocks and to support prices
Al-Fadhil explained that technically, especially with regard to the performance indicators of the oil markets, up to now, despite the recent fall in prices, the oil markets are still mainly supported by an unprecedented commitment in the implementation of the production reduction agreement among the countries of the Organization of the Petroleum Exporting Countries (OPEC).
He stressed that Kuwait continues to fully meet its commitments to make this historic agreement a success and restore the stability of world oil markets.
Regarding the most important technical indicators to measure the performance of oil markets, Fadil said that the excess of oil stocks remained stable and would gradually decline, as well as several other positive factors, the main one being that the Demand for oil increases in the second half due to the end of the maintenance season Periodical refineries around the world, as well as many new refineries in service in Asia and the Middle East by the fourth quarter of this year.
He added that there was a global oil shortage in many OPEC countries, as well as impediments to marine production in the Gulf of Mexico last July, due to the fact that there was a lack of oil. hurricane "Bari", as well as many expectations regarding the growth of shale oil production recently.
He pointed out that the slowdown in global economic growth was causing a lot of concern and that these had clouded the stock markets and therefore the world oil markets, expressing his optimism about the improvement of the situation of the markets. in the next few months.
Oil prices rose slightly yesterday, reversing the trend of fears of an economic slowdown and the trade war between China and the United States, which has reduced expectations of growth in global demand for crude oil.
At 1600 GMT, Brent crude futures prices were $ 58.54 per barrel, up 0.1% from the previous settlement price. WTI crude (US West Texas Intermediate) was $ 54.56 per barrel, up 0.09% from the previous close.
Futures on Brent and WTI tumbled last week, down more than 5% for Brent and down 2% for West Texas Intermediate.
The trade dispute between the United States and China caused a shake-up in global stock markets last week, and a sudden increase in US crude oil inventories put downward pressure on oil prices, which lost about 20 % of their peaks in 2019 in April.
Goldman Sachs said yesterday in a note that concerns over a trade war between the US and China leading to a recession were growing. He predicted that the two countries would not reach an agreement before the US presidential election of 2020.
The International Energy Agency (IEA) said on Friday that growing signs of an economic slowdown and escalating trade disputes had dampened the growth in global oil demand at the time. the slowest pace since the 2008 financial crisis. 1.1 million and 1.3 million barrels a day, respectively.
Russian oil production reached 11.32 million barrels per day (bpd) between August 1 and 8, against an average of 11.15 million bpd in July, said two sources close to data from the Russian Ministry of Energy. 'Energy.
The Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreed in July to extend their offer until January 2020 to support crude prices.

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