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Oman, Kuwait urge oil producers to pursue cooperation

AFP  |  Kuwait City 

Omani and Kuwaiti ministers today called on and non-producers to continue their unprecedented cooperation to maintain stability in the market.

Producers from the cartel and non-OPEC countries struck a deal in 2016 to trim production by 1.8 million barrels per day to re-balance the market after its collapse in 2014.

The deal, which runs out at the end of this year, has succeeded in boosting prices above USD 70 a barrel from below USD 30 a barrel in early 2016.

"I call for the signatories of the (cooperation) declaration agreement, those 24 nations from OPEC and non-OPEC, to continue the dialogue, the understanding and commitment in maintaining the market conditions that will encourage investment," Omani told an in

He also called for enhancing "collaboration and work together to ensure security of supply for consumers and security of demand for producers".

Kuwait's said he believes that were on the right path to restore stability to the

"A year ago, there was a surplus of 340 million barrels of oil. At the end of February, the surplus dropped to 50 million barrels and we believe we are on the right path to get rid of this surplus," told reporters.

He said that the OPEC and non-OPEC cooperation will be reviewed at an OPEC meeting in June.

"Market conditions will determine whether the deal will be extended beyond 2018 or arrive at a permanent agreement... to support the market on a long-term basis," he said. OPEC kingpin Saudi Arabia, the and several other countries have called for striking a long-term cooperation deal to stabilise the

OPEC told the conference that the 2016 deal achieved a great success in overcoming the "worst cycle in the history of oil".

A "new chapter is being authored" by OPEC and non-OPEC producers to continue cooperation, he said.

"In the months ahead, we will look to institutionalise this long-term framework for continuity with an inclusive and broad-based participation," Barkindo said.

The joint ministerial committee of OPEC and non-OPEC ministers, which monitors compliance to production cuts, meets in Jeddah, on Friday to review adherence and discuss long-term cooperation.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 16 2018. 17:10 IST