Home Page - Gulf in the Media
HomePoliticsEconomy                               Set Gulfinthemedia.com as home page
 Print  Send This Page
Save Listen to this Article
Saudi, Kuwait signal likely extension of oil supply cuts   

Oman Daily Observer - 21 April, 2017

Leading Gulf oil producers Saudi Arabia and Kuwait gave the clearest signal yet that OPEC plans to extend into the second half of the year a deal with non-OPEC producers to curb oil supplies.

Consensus is growing among oil producers that their supply restraint agreement should be extended after its initial six-month term, but there is as yet no agreement, Saudi Energy Minister Khalid al-Falih said on Thursday.

“There is consensus building but it’s not done yet,” he told reporters on the sidelines of a conference in the United Arab Emirates. Asked about non-OPEC producer Russia, Falih replied: “We are talking to all countries. We have not reached an agreement for sure, but the consensus is building.”

Kuwait’s oil minister Essam al-Marzouq, at the same event, said he expected to see an extension of the agreement.

“We have a noticeable increase in compliance from non-OPEC, which shows the importance of extending the agreement,” Marzouq said.

“Russia is on board preliminarily … Compliance from Russia is very good. Everyone will continue on the same level,” he said.

If OPEC and non-OPEC oil producers decide to extend their six-month agreement, the cuts may become less deep as oil demand is expected to be stronger for seasonal reasons in the second half of 2017, Marzouq said. He said OPEC would extend the deal if there was consensus among non-OPEC producers, and that producers were always looking for more non-OPEC members to join the agreement.

One African country has expressed interest in joining, Marzouq said, without identifying it.
Oman’s Minister of Oil and Gas Mohammed bin Hamad al Rumhy said a “quite high” number of producers favoured extending the supply restraint agreement.

“The number of countries that are supporting the extension I think would be quite high, percentage-wise,” Rumhy told reporters.

OPEC is keen that non-OPEC play its part in reducing world inventories to support a price rise that has stalled near $ 55 a barrel. Crude is up from lows last year below $ 30.

The Organization of the Petroleum Exporting Countries (OPEC) meets on May 25 to discuss extending supply curbs with non-OPEC countries that total 1.8 million barrels daily, two-thirds of that from OPEC.

Falih said there was “an initial agreement” that the oil cuts may need extending to drain high global inventories. He said talks were ongoing. “Our target is the level of inventories. This is the main indicator for the success of the initiative,” Falih said.

While inventories held at sea and in producer countries have dropped, they remain stubbornly high in consumer regions, particularly in Asia and the United States.

The International Energy Agency said last week that inventories in industrialised countries were still 10 per cent above the five-year average, a key gauge for OPEC.

However, Iraq may seek to be exempt and ask to boost its own output, the leader of the nation’s ruling coalition Ammar al-Hakim said.
 
  Other Top News
Saudi Forum 2017 to tackle opportunities as govt aims to hike FDI to 5.7% of GDP
Saudi Arabia is aiming to increase the foreign direct investment from 3.8% of its current GDP to about 5.7% in 2017, as part of its efforts to diversify its economy and boost investment inflows into the kingdom...
Dubai SME, CCCP, IP Academy join hands
Dubai SME, the agency of Dubai Economy mandated to develop the small and medium enterprise (SME) sector, and the Commercial Compliance & Consumer Protection (CCCP) sector in Dubai Economy, have signed a memorandum of understanding (MoU) with the IP Academy Singapore to..
Tunisia seeks Qatari investments in tourism development
Tunisia is inviting Qatari investors to participate in more than 10 major projects for the development of the North African country's tourism industry, a government official said yesterday...
New Bahrain hotels to draw $10bn investment
Fifteen new five and four-star hotels and beachfront resorts with a combined investment of more than $10 billion will be established in Bahrain over the next five years, a report said...
Annual minerals, mining exports exceed $7b
Iran's minerals and mining industries exports exceeded $7 billion in the previous Iranian calendar year 1395 (March 2016-March 2017), according to the latest data released by the Customs Administration...
Fri Apr 28, 2017| 01-شعبان-1438هـ
Syria expands anti-Daesh operations
Riyadh celebrates first Saudi Women's Day
UAE summons Iran's diplomat
Trump turns up the heat on Iran, but no clear game plan yet
Qatar tops world in BMI index for investment attractiveness
Qaeda kills Yemen police, targeted in US raid
Iran targets $8.6bn of refinery deals with Asia firms
UN chief: Syria dialogue must focus on transition for success
US President Trump strongly supports Iraq - envoy
DGCX traded 1.37m contracts valued at $33b in January
Iran rejects 'baseless' warning from US on missile test
GCC consumers spend $9.3 billion on beauty, personal care products
HM King hails parliament's role
Saudi sentenced 7 years in prison for entering Syria, joining Al-Nusra
AD CP, Emir of Qatar discuss ties
  Op-Ed
More>>  
    Reports
NBK Report on oil markets
GCC Banking Sector Quarterly - 2Q16
More>>  
    GCC Press Agencies
Day's main stories from the GCC Press Agencies
    GRC Analysis
UAE'S NON-OIL TRADE HITS DHS1.2 TRILLION
The Benefits of NATO-GCC Strategic Ties
The GCC and the EU's New Global Strategy
    GRC Commentary
Climate COP 22 in Marrakech Important for the Region
Earth Day 2016: The Promised Day
An Evolving Saudi-US Relationship
    GRC Press Release
Gulf Research Center press releases to the media
    GRC Publications
The GCC and the Global Oil Market in 2016
GCC and Regional Issues
GCC Economies: Vision Plans and Outlook
    GRC Newsletters/Bulletins

Enter your email to get the Newsletter
Go
GRC Publication
      
Privacy Policy | Contact Us | Terms & Conditions | About Us |
Weather | Qibla Directions | Hijri Date Conversion Tool
Full Page :total time:0  |   06-- 06 Middle Page :0  --   | Right : 06 - 06-nonexist-en--sess-enreq-en-coming