Kuwait proposed to control the reduction of oil production through exports
Kuwait, who heads the committee monitoring implementation of agreements on the reduction of oil production between OPEC and non-OPEC, proposes to establish a monitoring mechanism an agreement through using data on exports. This is stated in the statement of the Kuwaiti Ministry of Oil.
This monitoring mechanism has already been discussed during the meeting, General Secretary of OPEC Mohammed Barkindo and Kuwait's oil minister Essam al-Marzouk, reports Investing.com.
According to the Ministry, export controls proposed to organize "using well-known companies in the market, [list] which is subject to agreement."
E. Al-Marzouk said, that in case, if some country will not comply with the agreement, the Committee would turn first to the profile Minister for the offending country, and then to the head of state, which not complying with the agreement.
E.Al-Marzouk expressed the opinion, that the growth of demand for oil will absorb the growth of oil production in Libya and Nigeria, which are not included in the agreement on the reduction of oil production, as well as the possible increase in shale oil production in the United States. He recalled, that the purpose of the agreement was to reduce the oil to remove the excess inventories of oil in the world market.
The Committee on monitoring to implementation of an agreement on the reduction of oil production by OPEC and non-OPEC includes Algeria, Venezuela, Kuwait, Oman and the Russian Federation.
As reported OilNews, on November 30, 2016 at the Ministerial summit of OPEC was decided to reduce oil production to 32,5 million barrel per day. On December 10, to the previously announced reduction in OPEC production to 1,164 million barrels per day in the first half of 2017 joined 11 non-OPEC countries, which cut production by another 558 thousand barrel per day. Thus, the total reduction in oil production will amount to 1,7-1,8 million barrel per day.