KUWAIT CITY, Dec 25, (KUNA): The decision to lift the ban on exports of US crude oil, signed by President Barack Obama on Friday, will not have an immediate impact on the world oil market, said a Kuwaiti academic on Monday.
The Gulf Cooperation Council countries (GCC) decision to continue oil production at the same rates of those before the prices started to fall “is sound, and it’s an anticipation of what is happening now; the US dumping of the oil market,” said Dr. Ahmad Bader Al-Kouh, member of the faculty at College of Technological studies, the Department of Petroleum Engineering Technology.
Impact of the US decision to lift the ban on the oil export, which had lasted 40 years, will be seen in the future, he told KUNA.
Al-Kouh praised GCC oil exporting countries’ decision not to reduce the oil production and their commitment to maintain their market share.
US and Canadian oil companies, Russia, Iran and Venezuela will suffer most from the declining oil prices, as compared to the GCC countries that will be the least affected due to the low cost of production.
Surplus in Kuwait annual budget, posted when the oil prices were bullish, “might cover what we lost now,” he added.
It is expected that the deterioration of oil prices will continue until middle of next year.
In another report, Kuwait oil price rose 97 cents to USD 29.27 per barrel on Thursday compared to USD 28.30 pb on Wednesday, Kuwait Petroleum Corporation (KPC) said on Friday.
Price of the American crude oil on the international markets was boosted with decline of the US crude reserves and lifting ban on most of the US crude oil exports — thus it rose above the Brent Blend for the first since nearly a year ago.
Meanwhile, the Brent Blend climbed 52 cents to USD 37.89 pb upon settlement after falling to the lowest level since 11 years ago, standing at USD 35.98 pb, while the light American crude rose 60 cents reaching USD 38.10 pb.