Kuwait supports OPEC agreement extension to cut oil production

The oil minister of Kuwait has said that his country supports the extension of an OPEC agreement to cut crude oil production beyond June. “Kuwait supports the extension of the agreement after June because it will accelerate the rebalancing of the global oil market and will contribute to the return of prices to levels acceptable for producing countries and for the petroleum industry in general,” Essam Marzouk told Kuwait News Agency.

OPEC agreed in November last year to reduce total oil production by 1.2 million barrels per day, while eleven major producers agreed to cut production by 558,000 barrels per day. The minister stressed that it is too early to address any developments that may arise from the possibility of extending the production cut or freezing it after the initial agreement expires at the end of June. Marzouk noted that the extension is just one of the options available.

Crude oil prices have declined sharply since mid-2014, from $120 a barrel to $27 early last year, before recovering to reach the current price of $50.

Kuwait chairs the committee monitoring the oil agreement, which includes Algeria and Venezuela as well as Russia and Oman.