OPEC+ could rethink output increment, says Kuwaiti oil minister

OPEC+ could rethink output increment, says Kuwaiti oil minister

The expansion in oil output concurred last month by OPEC+ countries could be rethought at its next meeting on Sept. 1, Kuwait’s oil minister said on Sunday.

The Organization of the Petroleum Exporting Countries (OPEC) and partners including Russia, collectively known as OPEC+, will meet on Wednesday to talk about the recently concurred increment of 400,000 barrels per day (bpd) for the next several months.

“The markets are slowing. Since COVID-19 has begun its fourth wave in some areas, we must be careful and reconsider this increase. There may be a halt to the 400,000 (bpd) increase,” Mohammad Abdulatif al-Fares told Reuters on the sildelines of a government-sponsored event in Kuwait City.

Economies of East Asian nations and China stay influenced by COVID-19 and alert should be worked out, Fares added.

U.S. President Joe Biden’s administration has encouraged OPEC and its partners to support oil yield to handle rising gasoline costs that it sees as a danger to the global economic recovery.

Gotten some information about the U.S. call, Fares said OPEC+ individuals had various perspectives on the matter.

“There are meetings with OPEC countries, especially the Gulf Cooperation Council countries, and so far there are different views on how to handle this issue,” Fares said.

OPEC+ last year implemented a record output cut of 10 million bpd, likening to about 10% of world demand, when energy demand plunged in view of travel limitations and national lockdowns to counter the spread of COVID-19.