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Mon 18 May 2015 02:47 PM

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Kuwait OPEC governor does not expect oil price drop in H2

Nawal al-Fuzaia says he expects to see 'some sort of balance in oil market' in second half of this year

Kuwait OPEC governor does not expect oil price drop in H2

Global crude oil prices are not expected to fall in the second half of 2015, Kuwait's OPEC governor said on Monday, and any surplus supply was due rather to shale producers rather than OPEC.

"It is expected that there will be some sort of a balance in the oil market in the second half of 2015 which will support prices," Nawal al-Fuzaia told reporters in Kuwait city.

"I don't see a fall in oil prices, unless there was sudden developments in the market like supply disruption which is unlikely or an unexpected growth in the supplies from other producers outside OPEC," she added.

OPEC production had not increased by more than 200,000 to 400,000 barrels per day above its 30 million bpd cap since 2011, Fuzaia said.

The Organization of the Petroleum Exporting Countries said its oil output rose further in April by 18,000 bpd, due to record output in top exporter Saudi Arabia and increases in Iraq and Iran.

Fuzaia also said it was still too early to talk about OPEC's policy decision when the group meets next on June 5.

OPEC delegates have told Reuters it was unlikely it would cut production in June due to the rise in oil prices and a better-than-expected global demand.

Speaking in Malaysia, a senior Iranian official said on Monday it was unlikely OPEC would cut output in June.

Iran, along with Venezuela and Algeria, has repeatedly called for OPEC to shore up low prices that have eaten into producers' oil revenues.

In November, OPEC, led by Saudi Arabia, decided to maintain output and defend its market share against rising supplies from US shale and other major non-OPEC producers such as Russia.

That decision has succeeded in curbing supplies from high cost producers and supported prices, Fuzaia said.

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