KUWAIT: The price of Kuwaiti oil went up by $1.33 to $49.01 per barrel Friday after being at $47.68 pb the day before, said Kuwait Petroleum Corporation (KPC) yesterday. At the global level, the oil price went up to its highest number in five years due to the OPEC announcement to reduce the organization’s production by the beginning of next year.
The price of the Brent crude was up yesterday by 52 cents to $54.46 per barrel, the same case with the American crude which jumped by 62 cents to reach $51.68 pb.
An informed source in the Organization of the Petroleum Exporting Countries (OPEC) said a recently-formed ministerial committee will meet with representatives of non-OPEC producers in Vienna on Saturday, December 10.
The planned meeting was initially scheduled to take place in Moscow but consultations with Russian and other non-OPEC producers led to changing its venue, the source told KUNA on Saturday under the condition of anonymity. The meeting will follow the historic 171st Meeting of the Conference of OPEC, held in Vienna on Wednesday, November 30, where the conferees decided to bring down the OPEC oil output by 1.2 million bpd.
The decision, to take effect on January 1, 2017, is the first of its kind by the global organization since 2008; it will bring down the output ceiling to 32.5 bpd, the source noted. The conferees also formed a ministerial committee, chaired by Kuwait and including Algeria and Venezuela, to oversee commitment of OPEC member states to the decision on production cut and to their respective production quotas.
Saturday meeting is expected to focus on involving the non-OPEC producers in the effort to end the glut on the market, the source said. Such producers stated their desire to cut their production by 600,000 bpd with Russia pledging to cut its production by 300,000 bpd, the source noted, adding that such pledges will reduce the oil supply on the global market by a total of 1.8 million bpd. -KUNA