Kuwait oil undersecretary discusses cooperation with OAPEC chief
KUWAIT CITY, Jan 27, (KUNA): An oil expert anticipated Kuwait oil prices to increase to USD 60 per barrel (pb) in the second half of this year as the world is projected to witness stability following coronavirus pandemic with provision of vaccines thus return of normal life.
Mohammad Al-Shatti, addressing a virtual seminar about horizons of global economy and crude oil prices for 2021, organized by Kuwait Oil Ministry, said return of normal aviation operations would also help improve prices. He said prices between USD 70-80 pb were “relatively desirable” for the Arabian Gulf countries and achieve some balances in their budgets. Improvement of oil prices, added Al-Shatti, would primarily benefit the budgets of Arab Gulf countries which largely depend on oil as a major source of income.
He therefore called for diversification of income and execution of immediate reforms because oil prices were affected by global political and health conditions. Al-Shatti anticipated global economy to recover by over four percent in the second half of 2021, triggered by availability of Covid-19 vaccines.
Recovery of economy, he added, would encourage return of oil and gas investment coupled with optimism driven by a new US Administration. Initial estimates show that global oil stocks dropped by two million barrels per day (bpd) in December 2020, however it remained 11 percent higher than 2019, he said. Future of oil markets will depend on reaching an effective Covid-19 cure by mid-2021, recovery of economy by over four percent, an increase of industrial and economic operations, commitment of OPEC+ in markets’ stability and continuous drop of oil stocks, he said, which would transform the surplus into a deficit thus pushing prices to USD 60 pb.
Kuwait Oil Undersecretary Sheikh Dr. Nimr Fahad Al-Malek Al-Sabah held talks on Wednesday with Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Ali bin Sabt on boosting cooperaion.
The ministry said in a statement the two sides examined most significant actitvities carried out by the organization at present. Sheikh Nimer held the talks with the OAPEC secretary general during a visit to the organization headquarters – accompanied by the ministry director of public relations Sheikha Tamador Khaled Al-Ahmad Al-Sabah. The statement indicated that the two sides also examined steps that had been taken to link up the ministry website with OAPEC’s library.