The commitment rate to an agreement on limiting oil production by the Organisation of the Petroleum Exporting Countries (Opec) member countries and non-Opec countries was around 98 per cent last June, said Essam Al Marzouq, Minister of Oil of Kuwait.
Kuwait chaired the fourth meeting of the “joint ministerial committee on monitoring world oil market,” which was held in Russia from July 23 to 25, where the participants discussed the global oil output in June, Al Marzouq was quoted as saying by Emirates news agency Wam, which cited the Kuwait News Agency (Kuna).
Kuwait’s commitment rate from January to June 2017 was recorded at 99 per cent, he noted.
The committee called on countries with low commitment rates to exert further efforts to limit production and stabilise prices in the global oil markets, he added.
The agreement had a positive impact on reducing the overflow of oil in the international markets by 90 million barrels, said Al Marzouq. The committee is also studying the possibility of extending the deadline for the deal beyond March 2018 for further improvements, he explained.
He also noted that crude oil reserves in the US have decreased in the past weeks and in early summer when the demand for oil increases.
He expects demand to rise to around two million barrels per day in the second half of 2017, compared to the first half.
Meanwhile, the UAE energy minister is optimistic that oil producers would comply with a supply cut deal and that he expected improvements towards market balance.
“We are optimistic about … compliance from Opec and non-Opec countries and we look forward to … gradual improvements toward market balance,” Suhail Bin Mohammed Al Mazroui wrote on Twitter.
“Saudi Arabia and Gulf states (have) an excellent track record of compliance to Opec decisions and together with Iraq carry most of the cut,” he wrote.
Low imports of crude oil from Saudi Arabia, coupled with firm domestic petroleum demand, is expected to reduce US oil inventories
US commercial oil inventories are expected to fall in the week ending July 21, analysts surveyed by S&P Global Platts said in a report. US crude oil stock has fallen nearly 19 million barrels in the past three weeks, as excess surplus is reduced.
The supply, as of July 14, was 26 per cent higher than the five-year average, but lower than the 37 percent surplus above the five-year average seen at the start of 2017.
Source: Oman Tribune