Kuwait City, 1 April 2022 (TDI): Oil Minister of Kuwait, Mohamed Abdullateef Mohamed alFares stated that Kuwait supports the crude oil production decision taken by OPEC and allies including Russia.
It has been mutually opined that OPEC+ (the Organization of Petroleum Exporting Countries (OPEC) and other producers including Russia), will raise its production by about 432,000 barrels per day in May.
The increment in production means Kuwait’s output will be 2.695 million barrels of oil per day. OPEC and allies including Russia unanimously have decided on another passable monthly oil output boost and abandoned the Paris-based International Energy Agency.
The group has repelled the frequent calls from the US and the IEA to push more oil to lower prices, which have risen near to an all-time high since Washington and Brussels imposed sanctions on Russia after its invasion of Ukraine.
According to the head of commodities at Investec namely Callum Macpherson as Russian production is struggling, Saudi Arabia is keen to avoid falling out with Russia by at a time addition of extra barrels.
Saudi Arabia and the United Arab Emirates have repelled the higher output calls by saying that the group must stay out of politics and focus on balancing oil markets.
It is pertinent to mention that both states hold the bulk of spare production capacity within the OPEC. OPEC+ and other producers including Russia will raise their output by about 432,000 barrels per day in May.
According to the conservative estimate that as conflicts, sanctions, and infrastructure failure has hit the supply, ‘global oil supply disorder’ has reached up to 5 million to 6 million BPD, or 5% to 6% of world demand.
OPEC+ has been undoing the record output cuts in place since 2020, as demand has been recovering from the coronavirus pandemic, but not increasing the prompt output as per the suitability of the West and other consumers.