Kuwait confirms its commitment to reduce OPEC production to restore balance in the markets
Kuwait affirmed its full cooperation and commitment to reduce production levels in accordance with the quota set by OPEC, with the aim of restoring balance in global markets.
This came in a statement broadcast by the official Kuwait News Agency, quoting Kuwaiti Oil Minister Khaled Al-Fadhel on Sunday.
This comes in conjunction with Kuwait’s participation in the OPEC meetings scheduled for tomorrow, Monday, and the OPEC + meetings on Tuesday.
OPEC and its allies, major independent producers, agreed to reduce oil production by about 9.7 million barrels per day in early May.
The alliance, known as OPEC +, reduced its agreement to 7.7 million barrels per day from the beginning of August until the end of next December.
According to the coalition agreement last April, it is decided that the restrictions of the production cut agreement will be reduced by another 2 million barrels starting from January 2021, but the high infection with Corona virus in the United States and Europe may not help the coalition to move forward with the implementation of this plan.
Most of the coalition countries tend to maintain the current level of reduction at 7.7 million barrels per day until the end of next March, according to Reuters.
And Iraqi Oil Minister Ihssan Ismail has renewed his country’s commitment to the OPEC + agreement, stressing that Iraq will not ask for an exception from the decision to reduce oil production.
He stressed that the production cut agreement approved by the “OPEC +” oil producing countries achieves the goal of restoring stability and balance to global oil markets.
The minister revealed that the export rate of Iraq, the second largest producer of crude oil in OPEC, was stable at 2.876 million barrels per day, as what was exported from Basra ports amounted to about 2.770 million barrels per day during the month of November.
The Iraqi Oil Minister emphasized that the OPEC + agreement and the continued keenness of member states to adhere to the limitations of production cuts would preserve the price of a barrel of oil and contribute to its rise in the global market.
The oil minister said that Iraq would not ask for the exception for fear of a new drop in the price of a barrel on world markets.