Global oil market heading towards balanced supply and demand, says Kuwait Oil Minister

Gulf nation will continue to invest in expanding production to reach 3.2 million barrels per day by 2024, Saad Al Barrak says

Al Zour refinery in Kuwait. Oil Minister Saad Al Barrak said Kuwait is committed to the Opec+ decisions to reduce production. AFP

The global oil market is moving on the right path towards balanced supply and demand, Kuwait’s Oil Minister Saad Al Barrak said on Wednesday.

“The world is required to increase investment in all types of energy sources, including oil, to ensure meeting the needs of growing demand, the recovery of the global economy and energy security,” the official Kuna news agency quoted Mr Al Barrak as saying.

Mr Al Barrak, who was appointed to his position in June, replacing Bader Al Mulla, made his remarks during the 50th meeting of Opec's joint ministerial monitoring committee.

He also praised the decision by Saudi Arabia and Russia to continue voluntary reduction and extending it until the end of this year, pointing to the positive impact on the balance and stability of the oil market.

Last month, Saudi Arabia and Russia announced they would extend their combined supply cuts of 1.3 million barrels per day to the end of the year.

As part of the voluntary output caps, the kingdom is maintaining its output cut of 1 million bpd until December.

Meanwhile, Russia is rolling over its export cut of 300,000 bpd until the end of 2023.

Mr Al Barrak, who is also Kuwait’s Deputy Prime Minister and Minister of State for Economic and Investment Affairs, emphasised that Kuwait is committed to the Opec+ decisions to reduce production, in addition to the voluntary reduction. He said that Kuwait would continue to invest in expanding oil production to reach 3.2 million bpd by 2024.

On Wednesday, the Opec+ group of crude oil-producing states decided to stick to its current output policy as oil prices continue to rise, driven by tighter supplies and improving demand prospects.

Oil prices have rallied this year, gaining about 22 per cent in the September quarter alone.

This trend is expected to continue in the current quarter of this year, with the International Energy Agency predicting a tighter-than-expected crude market supported by Opec+ output cuts, as well as signs of accelerating economic momentum in China, the world’s second-largest economy.