Kuwait: No Gulf Agreement to Hike Oil Production
Kuwait on Friday denied that any agreement had been struck between the emirate, Saudi Arabia and other Gulf producers to pump more oil into the market immediately to bring prices down.
"These reports are fabricated, baseless and aim at creating chaos in the international oil markets," Kuwaiti Oil Minister Sheikh Saud Nasser Sabah told Al-Rai Al-Aam newspaper.
Sheikh Saud's comments follow reports that claimed main Gulf producers were planning to increase output by 500,000 barrels per day (bpd) in the coming days.
"All OPEC members, and particularly Kuwait, are committed to their last agreement. Any decision to activate the production mechanism is still premature," the minister added.
Saudi Oil Minister Ali Nuaimi on Monday stated his commitment to lower prices and promising to pump 500,000 extra bpd -- together with other OPEC members -- if necessary.
OPEC members last month agreed to a modest production hike of 708,000 bpd and to pump more oil into the market if the average price of crude remained more than 28 dollars a barrel for 20 working days.
Oil executives in Kuwait told AFP that an increase in production would not likely be considered before the end of July.
In London, benchmark Brent crude for August delivery was trading at 29.32 dollars a barrel Thursday.
In New York, light sweet crude for August delivery fell by 12 cents to 31.53 dollars a barrel. Prices had fallen by 1.83 dollars on Wednesday.
Kuwait, which has around 10 percent of the world's proven oil reserves, saw its output quota increased from 1.98 to 2.037 million bpd at OPEC's June 21st meeting in Vienna - KUWAIT CITY (AFP)
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