The Organisation of the Petroleum Exporting Countries (Opec) could end its current cap on oil output when it meets in Vienna in June, according to comments by Kuwait’s oil minister, Bakheet Al-Rashidi.
The news came as oil prices reached $74.75 (€60.8) a barrel, the highest level since 2014. Production limits imposed in January 2017 by Opec and Russia, which have taken roughly 1.8 million barrels a day out of the market, have been credited as causing the rising prices.
According to Opec’s latest monthly report, production cuts were introduced to reduce large stockpiles of crude oil. Most of the excess supply has been cleared and inventories are declining, said the report.
Kuwait is one of the six countries charged with ensuring compliance with the cuts, along with Saudi Arabia, Algeria, Venezuela, Russia and Oman. The current agreement is set to continue to the end of 2018 but there has been no announcement on whether it should be extended into 2019 and beyond.
“Market situations will determine if there will be a permanent agreement between Opec and independent producers to enforce market stability,” said Al-Rashidi, who was speaking at the Kuwait Oil and Gas Summit.
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