• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 1 hour Would bashing China solve all the problems of the United States
  • 4 hours Let’s Try This....
  • 3 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 4 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 2 hours 60 mph electric mopeds
  • 2 hours Pompeo's Hong Kong
  • 3 hours New Aussie "big batteries"
  • 7 hours China to Impose Dictatorship on Hong Kong
  • 21 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 4 hours Monetary and Fiscal Policies in Times of Large Debt:
  • 3 hours Oil Markets Could Soon Face A Devastating Supply Crunch
  • 17 hours Backlash Against Chinese
  • 2 days Iran's first oil tanker has arrived near Venezuela
Bitcoin’s Shocking Energy Consumption

Bitcoin’s Shocking Energy Consumption

Bitcoin’s energy consumption has been…

OPEC’s No.3 Already Started Cutting Oil Supply

Although the new OPEC+ agreement goes into effect on May 1, OPEC’s fourth-largest producer, Kuwait, has already started to reduce crude oil supply to international markets “sensing a responsibility responding to market conditions,” Kuwait’s Oil Minister Khaled Al-Fadhel told the official state Kuwait News Agency (KUNA) on Thursday.   

OPEC and its non-OPEC partners led by Russia agreed earlier this month to reduce their combined oil production by 9.7 million bpd in May and June, in response to the crash in global oil demand in the pandemic. Analysts, however, think that those cuts would be ‘too little too late’ to support the market, considering that the current demand loss stands at around 30 million bpd—three times the cuts promised by OPEC.

Kuwait is OPEC’s fourth-largest producer behind Saudi Arabia, Iraq, and the United Arab Emirates (UEA), and it pumped 2.84 million bpd of oil in March, up by 170,000 bpd from February, according to OPEC’s secondary sources in its latest Monthly Oil Market Report (MOMR). Kuwait, like its allies in the Persian Gulf, the UAE, and Saudi Arabia, opened the taps in March after early in the month Russia refused to back a 1.5-million-bpd collective OPEC+ cut to address the lower demand.

But after the OPEC+ group managed to hammer out a new deal earlier in April, Kuwait now says that it had started to reduce supply to the market, and called for “maintaining spirit of team work to face forthcoming challenges emanating from the coronavirus impact on the global oil demand.”

While Kuwait signals reductions in supply ahead of schedule, Saudi Arabia declined to comment for Bloomberg if it would cut supply before May, while UAE energy officials were not immediately available for comments. Iraq, however, a regular cheater in OPEC+ agreements, is not planning on reducing production before the start of the new deal, Alaa Al-Yasiri, acting director general of the state-run Oil Marketing Co, told Bloomberg.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News