UPDATE 1-Kuwait oil minister says optimistic on outcome of OPEC meetings

Published 03/03/2020, 13:29
Updated 03/03/2020, 13:36
© Reuters.  UPDATE 1-Kuwait oil minister says optimistic on outcome of OPEC meetings

(Adds quotes, background)

DUBAI, March 3 (Reuters) - Kuwait's oil minister said on

Tuesday he is optimistic about the outcome of OPEC meetings this

week despite the "noticeable" impact of the coronavirus outbreak

on the global oil markets during the past month, Kuwait state

news agency KUNA reported.

"Marathon" meetings will be held during by the Organization

of Petroleum Exporting Countries and its allies to reach an

agreement on the best ways to restore stability and balance to

the global oil market, Kuwaiti minister Khaled al-Fadhel told

KUNA before heading to Vienna to attend the

meetings. "We are optimistic on the expected outcome of the meetings

and the continued cooperation among the OPEC+ alliance," he

said.

"Global oil markets have been noticeably impacted during the

past month following the new coronavirus outbreak which

noticeably reduced oil demand and negatively affected the

prices," he added.

The International Energy Agency (IEA) said global oil demand

growth has fallen by 435,000 bpd in the first quarter to its

lowest level in a decade, and said that this forecast may be

revised even further. OPEC countries have been debating whether to further reduce

oil production by one million barrels per day (bpd), among other

options, as it seeks to stabilise falling prices. That is more

than an initially proposed cut of 600,000 bpd.

The group and its allies led by Russia known as OPEC+ agreed

in December a collective cut of 1.7 million barrels per day

(bpd) to their supply until the end of this month.

The Kuwaiti minister stressed the importance of eliminating

the expected surplus in global oil inventories especially during

the second quarter of this year, following the big decline in

global markets due to the impact of the new coronavirus

outbreak.

The global death toll has now risen above 3,000, with more

than 86,500 infections, and the virus is now spreading outside

China at a much faster rate than within the country where it

began.

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