KUWAIT CITY, July 24: Governor of Kuwait in the Organization of Petroleum Exporting Countries (OPEC) Haitam Al-Ghais said he is not worried about the uncertainty in the monthly oil production of OPEC as this is the natural result of maintenance works and development of oil tankers, reports Annahar daily.
He explained that changes in the quantity of oil production do not affect the agreement signed by OPEC members to reduce production. He pointed out the demand for oil has been increasing by 1.3 barrel per day, in addition to the seasonal increase in demand in the third quarter of the year when the number of travelers is usually high.
He said the demand of countries like India and China is growing, indicating these factors contribute to rising oil prices.
He cited other factors that affect the oil market; clarifying OPEC cannot control these factors such as the value of the US dollar, production of shale oil and geopolitical disorders. He added the reduction of oil storage in recent weeks is a positive indicator that demand is increasing this summer.
He disclosed the number of OPEC members reached 14 after the membership of Equatorial Guinea. He stressed that the decision of OPEC to reduce oil production is considered the lifeline for oil producing countries, pointing out the price of Kuwaiti oil was $34 per barrel in the second half of 2016 and it increased to $49 in the first half of 2017.
He added the price of the entire basket of oil products of OPEC was $36 per barrel during the second half of 2016 and it increased to $50 per barrel within the same period in 2017.
Concerning oil production in Nigeria and Libya, Al-Ghais said it is too difficult to reduce production in these two countries because their production needs more stability. He affirmed the two countries have been invited to a technical meeting with the committee of non-member countries.