98% commitment to agreement limiting global oil output

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 percent 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 23rd to 25th July, where the participants discussed the global oil output in June, Al-Marzouq informed the Kuwait News Agency, KUNA, on Friday.

Kuwait's commitment rate from January to June 2017 was recorded at 99 percent, 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, stated Al-Mazouq. The committee is also studying the possibility of extending the deadline for the deal beyond March 2018 for further improvements, he further added.

He also noted that crude oil reserves in the United States 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.

Source: Wam