Kuwait Favors an OPEC Output Cut Extension

Kuwait wants the Organization of Petroleum Exporting Countries (OPEC) to extend output cuts beyond June, becoming the producer group’s first member to call for more time to balance the global oil market, Bloomberg reported.

The US inventories have climbed more than expected, causing prices to decline even as global producers cut their output, Gulf News informed, citing Kuwait’s Oil Minister, Issam Al-Marzooq.

Ther minister added that the Gulf country supports rolling over the oil cuts, though it’s too early for OPEC to agree on an extension.

Al-Marzooq explained that an extension will ‘‘accelerate the re-balancing of the global oil market and will contribute to the return of prices to levels acceptable for producing countries and for the petroleum industry in general.”

OPEC and 11 other major producers agreed in 2016 to slash production, spurring a 20 % increase in Brent oil prices during the last five weeks of 2016. However, Brent crude, a global benchmark, has declined 9.6% in 2017 as the US output and supplies continued to grow.

Dr. Mahinaz El-Baz 318 Posts

Mahinaz El Baz received her PhD degree in International Economics from Helwan University in 2022. She has +10 years of experience in journalism and economic analysis. She received the "Best Economic Article Award" in 2016 from CFA Society Egypt.

Login

Welcome! Login in to your account

Remember me Lost your password?

Lost Password