KUWAIT: Kuwait’s Minister of Oil and Minister of Electricity and Water Mohammad Al-Fares on Tuesday extolled the joint cooperation and efforts by OPEC+ to guarantee stability at oil markets and achieve their balance through continuing the same current output levels. In a statement issued by the Ministry of Oil, Fares said the 13th ministerial meeting of OPEC+ was held in an atmosphere of optimism in wake of the announcement of coronavirus vaccine and the start of vaccination campaigns in several countries. The minister said that the vaccine would have positive and clear impacts on oil demand in the second half of 2021, according to OPEC studies and expectations. He also lauded Saudi Arabia’s leading role in preserving stability in oil markets.
Tuesday’s meeting resulting in a deal that will enhance gains at market, he said, noting that the countries attended the meeting agreed not to increase output next February and March, and maintain the same levels agreed upon for January 2021, with a slight increase of Russian and Kazakhstani outputs in February and March. This agreement will boost stability and balance in oil markets in the current phase, as the meeting will be held monthly to determine the required output levels in line with the recovery of the global oil demand, he stated.
He pointed out that Saudi Arabia offered willingly a “generous initiative” to reduce voluntarily production during February and March that helped support the atmosphere of optimism about the credibility of OPEC + on focusing on improving market fundamentals and encouraging withdrawals from oil reserves in order to stabilize markets.
Kuwait has played an effective role in encouraging an atmosphere of optimism, understanding and reaching a historic agreement, as well as back efforts of Saudi Minister of Energy Prince Abdulaziz bin Salman, he said. During the meeting, Fares indicated that the new wave of the novel coronavirus (COVID-19) increases concerns about the slow pace of the recovery of oil demand, especially in Europe and Asia where refining in them suffers from a slow demand.
Oil Ministers of OPEC+ had stressed commitment to abiding by output quotas to achieve stability and balance at oil markets. This came during the final statement issued following the 13th OPEC and non-OPEC Ministerial Meeting held via videoconference on Tuesday. The meeting, which reconvened following an initial round of discussions on January 4, reaffirmed the continued commitment of the participating countries in the Declaration of Cooperation (DoC) to a stable market in the mutual interest of producing nations; the efficient, economic and secure supply to consumers; and a fair return on invested capital, it said. – KUNA