• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 16 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours How Far Have We Really Gotten With Alternative Energy
  • 10 days What fool thought this was a good idea...
  • 2 hours Bad news for e-cars keeps coming
  • 8 days A question...
  • 12 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 13 days They pay YOU to TAKE Natural Gas

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

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

ADVERTISEMENT

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

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News