• 3 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 5 minutes CoV-19: China, WHO, myth vs fact
  • 8 minutes Question: Why are oil futures so low through 2020?
  • 11 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 8 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 30 mins Question - What if there are no buyers for Chevron's Appalachia Assets?
  • 30 mins Blowout videos
  • 9 hours Energy from thin air?
  • 14 hours OIL trades as if the virus is a 1 quarter event. As if it's Containable, Reversible and Temporary. Is it ?
  • 1 day Hey NYC - Mayor De Blasio declares you must say goodbye to fossil fuels. Get ready to freeze your Virtue Signaling butts off.
  • 3 hours Can LNG Kill Oil?
  • 1 day Fast-charging, long-running, bendy energy storage breakthrough
  • 1 day Foxconn cancelled the reopening of their mfg plants scheduled for tomorrow. Rescheduled to March 3rd. . . . if they're lucky.
  • 2 days "For the Public's Interest"
  • 16 hours Coronovairus, Phase One Agreement, Lower for Longer
  • 2 days Cheap natural gas is making it very hard to go green

Oil Dips On Renewed Kuwait/Saudi ‘Neutral Zone’ Oil Production Talks

Oil plant

Oil prices cheered on Wednesday following the EIA’s report that crude oil inventories in the United States had drawn down by almost 11 million barrels. But the levity among the bulls may soon be over as Kuwait and Saudi Arabia announced that they have had further discussions about their cooperation in the jointly owned fields known as the Partitioned Neutral Zone.

Saudi Arabia’s minister of state for energy affairs met with Kuwaiti officials, according to KUNA, and discussed oil production in the southern neutral zone, to commence after technical issues are put to bed on both sides.

The shared oil fields can produce a half a million barrels of oil per day.

Talks between Kuwait and Saudi Arabia on the joint fields began last month in hopes of putting the old territorial dispute behind them in order to exploit the oil riches in the shared field. Production has been shut in in the field since the end of 2014.

Kuwait has set its sights on increasing its oil production by 4 million barrels per day by 2020, despite the OPEC+ agreement that is currently restricting production. To achieve this higher level of production, Kuwait would need to pump oil from the neutral zone. But that’s not all it will need.

Kuwait is also looking to come to a similar understanding with its other neighbor, Iraq. Those countries share a nuetral zone as well. In June, Kuwait’s oil minister announced that an agreement with Iraq is in the works, according to KUNA.

Oil prices soured on the news, after perking up earlier in the day. WTI fell back to $55.90 by 4:30pm, a drop of 1.53%. Brent crude had fallen back to $63.18, a loss of 1.02% for the day.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage


Leave a comment
  • Reader Doe on July 25 2019 said:
    Error: should be "to" 4m barrels a day by 2020....not "Kuwait has set its sights on increasing its oil production by 4 million barrels per day by 2020."

    just helping fyi

Leave a comment

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