(MENAFN - Arab Times)
DUBAI, Jan 4, (Agencies): State-owned Kuwait Petroleum Corp (KPC) said on Wednesday it was committed to an oil output cut agreed by the Organization of Petroleum Exporting Countries at a meeting in Vienna in November, Kuwait's state news agency KUNA reported.
KPC said in a statement it had notified its clients of the production cuts from the start of January, saying they will be in effect for the whole of the first quarter of 2017.
Under the agreement reached in Vienna on Nov. 30 to cut output by 1.2 million barrels per day, Kuwait would cut its production by 131,000 bpd.
OPEC's Secretary General Mohammad Barkindo is scheduled to visit Kuwait on Sunday to discuss with Oil Minister Essam Al-Marzouq task mechanisms of the organization's committee charged with monitoring crude output.
Kuwaiti Ministry of Oil said in a statement, on Wednesday, that the visit by Barkindo, who would be accompanied by a delegation during his four-day stay in the country, signaled Kuwait's significant status as chairman of the production monitoring commission and the Gulf state's leading role in conventions of the Organization of Petroleum Exporting Countries.
Minister Al-Marzouq, who will meet the OPEC secretary general during the visit, doubles as Minister of Electricity and Water.
The Ministry's statement added that Barkindo's mission follows OPEC member states' agreement, on November 30th, to slash the overall crude oil output by 1.2 million barrels per day, effective Jan 1st. The Kuwait-chaired watchdog commission includes as members Algeria and Venezuela from OPEC, non-OPEC members Russia and Oman.
Meanwhile, Oman started reducing its oil production rate by 45,000 barrels per day, in the light of an agreement by OPEC and non-OPEC oil producing countries to stabilize oil prices.
Oman's daily production will be at about 970,000 barrels, compared to over one million barrels in the previous period, the Ministry of Oil and Gas said in a statement on Wednesday.
The agreement, announced on December 10, aims to reduce international production by about 558,000 barrels per day for a period of six months starting Jan 6th.
Omani oil for March delivery reached 55.04. According to Dubai Mercantile Exchange (DME), Oman oil rose 80 cents yesterday, compared to Friday's price of 54.24 for February delivery.
As for international markets, oil prices recorded their highest rate within 18 months with hopes that the limiting agreement would control the overflow of offered oil.
Meanwhile, Brent crude oil jumped over two percent to reach 58.37 per barrel, its highest price since July 2015.