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Thu 2 Aug 2018 09:35 AM

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Global oil markets nearing stability, says Kuwaiti oil minister

Bakhit al-Rashidi said he hopes production in the joint Kuwaiti-Saudi Neutral Zone will resume 'very soon'

Global oil markets nearing stability, says Kuwaiti oil minister
Kuwaiti oil minister Bakhit al-Rashidi.

The global oil market is approaching stability following the OPEC and non-OPEC agreement to boost output, according to Kuwaiti oil minister Bakhit al-Rashidi.

“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 on Wednesday.

According to Al-Rashidi, Kuwait raised output after the June OPEC agreement and is currently pumping 2.8 million barrels per day, adding that Kuwait’s total production capacity is 3.1 million barrels per day.

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 area in Kuwait and Saudi Arabia in which foreign firms have equity in oilfields, which are owned and operated by state oil companies. Of the two oilfields in the Neutral Zone, one, the Khafji oilfield, was shut down in October 2014 due to environmental concerns, while another was shut in May 2015.

Lastly, the minister said the Kuwait has never been asked to increase production in a bid to offset any shortage of Iranian oil supply due to US-imposed sanctions, adding that Kuwait’s main concern is the stability of the markets.

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