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Minister of Oil: Economic conditions and interest rates are two major factors in determining supply and demand rates

04-06-2024

Deputy Prime Minister and Minister of Oil and Chairman of the Board of Directors of the Kuwait Petroleum Corporation, Dr. Imad Al-Atiqi, confirmed on Tuesday that global economic conditions and interest rates affect the pace of recovery of the oil market. Al-Atiqi said in a press statement issued by the Ministry of Oil that the ministerial meetings of OPEC and OPEC Plus held yesterday, Sunday, come in support of the precautionary and proactive efforts made by OPEC Plus as part of its efforts to support the stability and balance of the oil market. Al-Atiqi welcomed the positive results of the meetings, which it is hoped will result in the recovery and balance of the oil market, as they included extending additional voluntary production cuts until the end of December 2025. He called for caution, vigilance and caution when reviewing developments in global oil markets, pointing to the agreement of OPEC Plus countries to continue extending the additional voluntary cuts of 2.2 million barrels per day that were announced in November 2023 to the end of September 2024. He stressed that the OPEC Plus strategy towards the oil market will depend mainly on the pattern of developments in the oil market. He stated that the State of Kuwait’s decision to extend its voluntary reduction of 135 thousand barrels per day until September 2024 instead of the end of the second quarter of this year will contribute to supporting the oil market and its stability in coordination and cooperation with the countries participating in (OPEC Plus), pointing to Kuwait’s continued production at 2.413 million. barrels per day. Al-Atiqi praised the strategy of the member states participating in the additional voluntary reduction under the umbrella of (OPEC Plus) to begin restoring its quantities, which was implemented from November 2023, as it will be according to a gradual monthly program starting from October 2024 and ending with completing the quantity in September 2025, and the production level will be for the State of Kuwait. In September 2025, at 2.548 million barrels per day, and this is subject to and according to developments in the oil market. He stressed that the commitment of member states in the Declaration of Cooperation Agreement to reductions and voluntary reductions in an integrated manner is vital, as it is in line with the collective goal of ensuring market stability and proactively interacting with the dynamics of global oil demand. He noted the pledge of Iraq, Russia and Kazakhstan to achieve full compliance and resubmit their updated compensation plan for compensation for an increase in production beyond the required production level since January of 2024 to the General Secretariat of OPEC before the end of this June, as was agreed upon at the 52nd meeting of the Ministerial Committee. Joint production control.