APS : Tuesday, 17 January 2017
WASHINGTON- Algeria, Saudi Arabia and Kuwait have fulfilled their commitments by cut their oil output in order to reduce surplus on the market, according to a research by the American equity fund JP Morgan Emerging Markets, quoted by the energy news site Oil Price.
“Saudi Arabia, Kuwait and Algeria may have cut their respective production below the levels they had promised in the OPEC (Organization of Petroleum Exporting Countries) deal, because all three are eager to show not only that they comply with the cuts, but also reduce the supply more than pledged,” said Oil Price.
“These states were crucial to the negotiations that forged the deal last year,” added Oil Price.
“Algeria, whose production cut as per the deal is 50,000 barrels per day (…) may even cut 65,000 bpd,” said Oil Price, citing the interview given by Minister of Energy Noureddine Boutarfa to Bloomberg.
Saudi Arabia, which pledged to reduce its supply by 486,000 bpd to 10.05 million bpd, had cut production to below 10 million bpd, said the energy news site, quoting Saudi Oil Minister Khalid Al-Falih.
For his part, Kuwaiti Oil Minister Essam al-Marzouq said on Sunday that his country could reduce its production by 148,000 bpd.
“Our part of the cut is 133,000 bpd (…) we dropped by 6,000 more and we might drop to 146,000 or 148,000 bpd,” he said.
“It’s no surprise” that Algeria and Kuwait, which sit on the monitoring committee set up to supervise the implementation of OPEC deal, and Saudi Arabia, OPEC’s biggest producer, “to lead by example,” said Oil Price.
In parallel with these efforts to stabilize oil markets, US producers are taking advantage of the surge in oil prices to increase output.
According to figures provided by Oil Price, the US supply increased by 500,000 bpd since OPEC announced the deal at the end of September.
OPEC member states are due to meet in Vienna on 22 January to adopt monitoring mechanisms, said Friday OPEC Secretary General Mohammad Barkindo in an interview with Bloomberg Television.