Kuwaiti oil minister sees stability in market
Bakhit Al Rashidi reveals Gulf state is producing just 300,000 bpd below its daily maximum output level.
Kuwait’s Oil Minister Bakhit Al Rashidi has told reporters that he believes the global oil market is returning to stability, according to our sister publication Arabian Business.
“It is clear today based on the current level of production that we are approaching a very stable stage…whether for the consumers or the producers,” he told reporters earlier this week. Kuwait is a member of the Organisation of the Petroleum Exporting Countries (OPEC) and following the OPEC and non-OPEC meetings in Vienna in late June, output cuts by a cartel of 24 nations were reduced in a bid to alleviate upward pressure on the oil price.
Al Rashidi stated that Kuwait is currently generating 2.8mn barrels per day (bpd) with its maximum production around 3.1mn. But the Gulf state has not been involved in any discussions around ramping up production after the re-imposition of sanctions on Iran in the near future.
Additionally, Al Rashidi expressed optimism that oil production in the Neutral Zone shared between Kuwait and Saudi Arabia would resume “very soon.”
The zone is the only region in Kuwait and Saudi Arabia in which foreign firms have equity in oilfields, which are owned and controlled by state oil companies. The Khafji oilfield in the zone was shut down in October 2014 due to environmental concerns while another was shut in May 2015.