OPEC and its allies in the global oil output cuts stressed the need to maintain their cooperation to stimulate adequate investments to ensure stable oil supply.
Energy ministers from Saudi Arabia, the United Arab Emirates, Kuwait, Algeria and Oman held an unofficial consultative meeting on Saturday in Kuwait City, the Kuwait News Agency reported, citing a statement from the joint ministerial monitoring committee of OPEC and non-OPEC countries. They discussed market conditions and the producers’ compliance with the global output cuts, it said.
The Organisation of the Petroleum Exporting Countries, Russia and several other producers agreed to cut output by about 1.8 million barrels per day (bpd) starting from January 2017. The curbs have driven down inventories and pushed up oil prices.
The ministers “emphasized the need for healthy market conditions that stimulate adequate investments in the energy sector, in order to ensure stable oil supplies are made available in a timely manner to meet growing demand and offset declines in some parts of the world,” according to the statement issued Sunday.
The ministers also “emphasised the need for healthy market conditions that stimulate adequate investments in the energy sector, in order to ensure stable oil supplies are made available in a timely manner to meet growing demand and offset declines in some parts of the world,” the statement added.
The agreement has helped raise oil prices to above $80 a barrel and reduce a global oil supply glut.
The meeting took place after the Saudis and Russia announced a new policy to revive oil production. Most other producers weren’t consulted about the proposal and oil prices fell after the news.
Russia’s Energy Minister Alexander Novak said that his country remains “fully committed” to keeping balance in the oil market. Russia’s compliance with the output quota the global cuts deal was 95% in May, Novak said in a statement late Saturday. Russia and Venezuela, which are both members of the monitoring committee, didn’t attend the meeting in Kuwait City.
The ministers at the Kuwait City meeting “called for sustaining the current partnership in order to continuously adapt to ongoing market dynamics, in pursuit of the interests of consumers and producers whilst promoting healthy global economic growth,” according to the statement.
“The ministers discussed overall market developments and took stock of healthy global oil demand growth,” it said.
OPEC could decide to raise oil output as soon as June to cool the market and due to worries over Iranian and Venezuelan supply and after Washington raised concerns the oil rally was going too far, OPEC sources familiar with the discussions told Reuters last month. OPEC meets next on 22 June to set oil policy.