Kuwait’s oil output reaches 2.8-million barrels per day
Minister of Oil and State Minister for National Assembly Affairs has said that Kuwait’s production of the crude oil did not drop less than 2.8 million barrels per day in August, adding meantime that Kuwait’s current output capacity stands at 3.50 million barrels per day (bpd).
In exclusive remarks carried by Kuwait News Agency (KUNA) on Sunday,Dr. Mohammad Al-Busairi said that the price of the oil on the markets would have jumped to much higher levels had OPEC producers, namely and Kuwait and Saudi Arabia, not increased their production of the crude.
Elaborating in the remarks to KUNA, Minister Al-Busairi added that price fluctuation was due to the international debts’ crisis, namely in the United States and Europe, result of stoppage of the Libyan crude exports and inflation of the Chinese market.
High demand for the crude is expected to proceed, at a rate of 1-1.5 million bpd till the end of the year, he said, citing studies prepared by the Organization of Petroleum Exporting Countries.
Asked why the producers refrained from lifting the output at the latest OPEC meeting, despite the noticeable higher demand for the crude, Al-Busairi indicated that some of the producing states argued that it was not necessary to take such a step, “with consideration to some geo-political circumstances in the Arab region.
That approach was adopted for other reasons such as the lifting of the output by Kuwait and Saudi Arabia to meet the higher global demand.
“Without such a measure, the prices of the oil would have shot up much higher than the current level and would have caused a global crisis that would boost the global economic recession,” he noted.
He expressed hope that the prices of the oil would remain stable till the end of the year, indicating that the producers would examine a new avenue at the their upcoming meeting in September.
Asked whether Kuwait would seek to hike the production of the crude at the coming OPEC meeting, Al-Busairi said it had asked so during the past meeting of the OPEC cartel, stressing that Kuwait could put out up to 3.50 million bpd.
“We believe that our production at present is determined according to the demand of our clients round the world, namely those with long-term contracts from the promising East Asian nations and countries of high development rates,” he concluded.