Kuwait’s oil minister says would support production cut beyond June

OPEC members will meet on May 25 to discuss a possible extension

Kuwait’s oil minister Essam al-Marzouk has said the country supports extending the current OPEC oil production cut beyond its June deadline.

In a wide ranging interview with state news agency KUNA, Marzouk said the results of the deal agreed by OPEC and non-OPEC members had been “very positive so far” and would bear fruit in the coming months.

Read: OPEC cut 40% more in Feb than pledged in oil deal

He added that Kuwait supported extending the agreement after its June expiry date to help rebalance the global market.

To “rebalance the oil market process is not easy and requires more time and effort”, he said indicating he would consult with the ministers of other countries.

OPEC members will meet on May 25 to discuss a possible extension.

Read: OPEC, non-OPEC agree first global oil pact since 2001

Marzouq also mentioned thawing relations between OPEC and US shale producers after a meeting between both sides last week and said there were signs of a recovery in US inventory data, with nearly 91 rigs coming online since the beginning of 2017.

He suggested the higher rise in US inventories than expected was to blame for the sharp decline in oil prices over the last week, with crude benchmark Brent dipping from around $56 to less than $52.

However, Marzouq said there was a clear perception by both sides of the importance of not increasing global production at the same pace seen between 2012 and 2014 which led to sharp declines in prices.