News
& Events

Kuwaiti Oil Minister: Kuwait welcomes the OPEC + agreement and stresses the importance of continued cooperation

01-04-2021

Kuwaiti Oil Minister Dr. Mohammed A. Alfares praised the success of the OPEC Plus meeting held today, and stressed the importance of continuing cooperation to restore market balance. A statement issued by the Ministry of Oil said That positive developments in the past period contributed to a tangible improvement in the conditions of the oil market, which was reflected in the expectations of an improvement in oil demand with the continued spread and distribution of the vaccine, the continued decline in the surplus oil reserves globally, and OPEC Plus’s policy of cautious handling of the total developments in the oil market, and based on these data, the ministers agreed Oil and energy in OPEC Plus countries to go ahead with a gradual increase in oil production levels during the next three months, starting from May by 350,000 barrels per day, then June, 350,000 barrels per day, then July, 440,000 barrels per day. The share of the State of Kuwait from this increase in production quotas amounts to 29 thousand barrels per day during the months of May and June and 38 thousand barrels per day during the month of July. The Kingdom of Saudi Arabia will also gradually increase its production by 250 thousand barrels per day during the month of May, 350 thousand barrels per day in the month of June, and 400 thousand barrels per day in the month of July, to end the voluntary reduction that the Kingdom made by 1 million barrels per day during The past months, which undoubtedly led to a tangible development in the oil market conditions. Emphasis was placed on the importance of adherence to the shares decided according to the agreement and the importance of raising the rates of commitment to them, as well as the necessity to implement the compensation mechanism agreed upon for countries that did not fully comply during the previous months, as it was agreed to extend the compensation period until next September. The Minister of Oil, Dr. Mohammed Alvarez, praised the agreement as well as the Saudi Green Initiative, which is in line with the preservation of the environment and international’s laws in this regard and related to climate change. This is not surprising for the Kingdom of Saudi Arabia and its role in the world, and His Excellency the Minister praised the atmosphere of cooperation that came out of the agreement, which aims to recover markets Oil. The next OPEC Plus meeting will be held on April 28 to review the impact of the agreement and the market conditions during the next phase.