Energy ministers from Saudi Arabia, the United Arab Emirates and Kuwait plan to meet on Saturday, 2 June, to discuss OPEC matters
The decision came about a week after the Saudis and Russia announced a new policy to revive oil production.
Saudi Energy Minister Khalid Al-Falih will meet with Kuwait’s Bakheet Al-Rashidi and the UAE’s Suhail Al Mazrouei—also the holder of OPEC’s rotating presidency—in Kuwait City, according to people with direct knowledge of the matter who asked not to be identified because the information isn’t public. It is possible that Oman’s Oil Minister Mohammed Al Rumhi may join, according to Bloomberg.
Last week Saudi Arabia and Russia signaled they’ll restore some of the output they halted as part of an accord with 22 other nations to help erode a global crude glut, causing a drop in in the oil price.
The Organization of Petroleum Exporting Countries and allied producers, including Russia and Oman, are due to meet at the end of June in Vienna to discuss the output cuts agreement, which is currently due to run for the rest of this year.
The meeting in Kuwait City will be held to make sure that these countries are on the same page ahead of the OPEC meeting next month, according to Ole Sloth Hansen, Head of Commodities Research at Saxo Bank A/S in Copenhagen. “Potential dissent will very much depend on the price behavior between now and June 22. Having seen a five dollar drop in a few days is obviously upsetting to those who were not privy to last week’s announcement.”
He added that the UAE and Kuwait are the two countries after Saudi Arabia and Russia that will benefit the most from an agreed increase in production because they have enough spare capacity.
Brent crude prices have jumped 13 per cent this year and the production cuts achieved a key goal of eliminating the global surplus. The excess in oil inventories, which has weighed on prices for three years, plunged in April to less than the five-year average for stockpiles in developed nations, according to people with knowledge of the data, Bloomberg said.