Saudi Arabia, Kuwait and Algeria are reducing oil production even more than pledged ahead of this week’s monitoring talks
Saudi Arabia, Kuwait and Algeria may have cut their respective production below the levels they had promised in the OPEC deal, because all three are eager to show not only that they comply with the cuts, but also reduce supply more than pledged, according to JP Morgan Emerging Markets.
“Arguably these states were crucial to the negotiations that forged the deal last year and are keen to demonstrate not just compliance but production cuts that go beyond the agreed level,” JP Morgan Emerging Markets said in research, as quoted by Azeri outlet Trend news agency.
Saudi Arabia, in particular, has the fiscal capacity to cut output below the levels it had agreed with the cartel, the analysts said.
Last week Saudi Arabia’s oil minister Khalid al-Falih said that the kingdom had cut production to below 10 million bpd, the lowest level in two years, and even lower than its commitment to reduce supply by 486,000 bpd to 10.058 million bpd.
Kuwait, for its part, said 10 days ago that it had reduced oil production for January to around 2.707 million bpd, in line with the promised cuts.
Saudi Arabia, Kuwait and Algeria may have cut their respective production below the levels they had promised in the OPEC deal, because all three are eager to show not only that they comply with the cuts, but also reduce supply more than pledged, according to JP Morgan Emerging Markets.
“Arguably these states were crucial to the negotiations that forged the deal last year and are keen to demonstrate not just compliance but production cuts that go beyond the agreed level,” JP Morgan Emerging Markets said in research, as quoted by Azeri outlet Trend news agency.
Saudi Arabia, in particular, has the fiscal capacity to cut output below the levels it had agreed with the cartel, the analysts said.
Last week Saudi Arabia’s oil minister Khalid al-Falih said that the kingdom had cut production to below 10 million bpd, the lowest level in two years, and even lower than its commitment to reduce supply by 486,000 bpd to 10.058 million bpd.
Kuwait, for its part, said 10 days ago that it had reduced oil production for January to around 2.707 million bpd, in line with the promised cuts.
Source: Saudis, Kuwait, Algeria Cut More Than Pledged To OPEC | OilPrice.com
