Kuwait’s commitment to implement a production cut agreement, between member states of the OPEC members and the Russia-led group of non-member countries, reached nearly 160 percent in July, Kuwait’s oil minister Dr. Khaled Al-Fadhel said on Monday.
In a press statement, Al-Fadhel noted that in spite of the recent decline in oil prices are still mainly supported by the unprecedented commitment to implement the OPEC agreement. Kuwait will continue its commitments to make this historic agreement a success and restore stability to world oil markets, he added.
Global oil market performance indicators are still almost stable and global oil demand is acceptable and should recover in the coming months despite recent declines in oil prices, but overestimating global economic concerns negatively affects the stability of oil markets, the statement said. Regarding technical indicators to measure the performance of oil markets, Al-Fadhel said that the oil surplus was stable and it is heading towards a more gradual decline.
There are several other positive factors, he assured, with the rising demand for oil during the second half of the year due to the end of the regular maintenance season for refineries around the world, as well as the entry of many new refineries to serve in Asia and the Middle East by the fourth quarter of this year. On other hand, he pointed out that there was a global shortage of oil supplies from many countries from within OPEC, as well as the constraints of offshore production in the Gulf of Mexico during July due to Hurricane Barry.
Many concerns about the decline in global economic growth emerged recently, which cast a shadow on global stock exchanges and thus on the international oil stock markets the Minister added, expressing optimism about the improvement of market conditions in the coming months.
In July, the International Monetary Fund (IMF) issued a forecast for global economic growth, saying it will be at 3.2 percent for 2019, and 3.5 percent for 2020. These expectations reflect the concerns of the world’s trade problems, he said. Although these forecasts were down by 0.1 percent from the previous forecast in April, they are still considered good growth levels and in line with the global economic growth rates during the past ten years.