The Opec will make the point in three months on the agreement of reduction of production in force since the beginning of the year to decide whether to extend it or terminate it, Monday said Essam el-Marzouk, the minister of Oil of kuwait, Kuwait TV.
“At our next meeting at the end of November (…) the most important elements related to the fate of the agreement to determine if it will be necessary to extend or stop the reduction of the production.”
Oil stocks have declined more than expected in recent weeks, has yet observed the minister.
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Opec said at the beginning of the month, expect a better compliance of its agreement to lower production, at the end of a two-day meeting with other producers in Abu Dhabi who had been to tancer four countries that were lagging behind efforts to rebalance the global market.
Iraq and the united arab Emirates bad students
The Organization of the petroleum exporting countries (Opec) and other countries are committed to reduce the production of 1.8 million barrels per day (bpd) until march 2018 to absorb the oversupply of crude. But Iraq and the united arab Emirates, Opec members, do not meet their obligations according to the secondary sources that the organization uses to monitor its production. Even the Kazakhstan and Malaysia, non-members, have increased their production in recent months, according to the international energy Agency (IEA).
At a meeting held in July in Russia, the Emirates and Iraq had confirmed their commitment to the agreement, but without proposing a concrete solution to reach their production goals, according to sources. The two countries dispute the estimates of their production by secondary sources.