Kuwait minister 'optimistic' about oil market fundamentals
Tariq Suleiman Al-Roumi's comments came after Monday's OPEC+ meeting where Al-Roumi and other ministers from the Joint Ministerial Monitoring Committee met online for brief talks to stress the need for full compliance with oil production agreements.
"(I am) optimistic about the fundamentals of the oil market and that OPEC+ efforts target energy security and market balance," KUNA quoted him as saying, without giving further details.
OPEC+, which pumps about half of the world's oil, has been curtailing production for several years to support the market. But it reversed course this year to regain market share, and as U.S. President Donald Trump demanded OPEC pump more to help keep a lid on gasoline prices.
Eight members began to raise output in April and have accelerated production increases since then. Their most recent decision calls for an oil output increase of 548,000 barrels per day in August.
Al-Roumi said Kuwait supports efforts to maintain a stable international oil market and that OPEC+ decisions are based on market developments.
Kuwait possesses some of the world's largest oil reserves and, unlike its Gulf neighbours, remains heavily dependent on oil as it makes slow progress on diversifying its sources of revenues.
It ran up a budget deficit of $5.23 billion for the fiscal year 2023/24, on the back of declining oil revenues based on an oil price of $86.36 a barrel.
Kuwait's draft budget for the fiscal year 2025/26, which started on April 1, sees the deficit widening to $20.43 billion as oil revenues are expected to fall 5.7% from 2024/25, based on an oil price of $68 a barrel, the country's finance ministry said in February.
($1 = 0.3055 Kuwaiti dinars)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
31 minutes ago
- Reuters
Oil falls more than $2 a barrel on worries about OPEC+ supply, US jobs data
HOUSTON, Aug 1 (Reuters) - Oil prices fell more than $2 a barrel on Friday morning on jitters about a possible increase in production by OPEC and its allies, while weaker-than-expected U.S. jobs report fed worries about demand. Brent crude futures were down $2.04, or 2.85%, at $69.66 a barrel by 9:52 a.m. CDT (1452 GMT). U.S. West Texas Intermediate crude was down $1.95, or 2.82%, at $67.31. Both benchmarks remained on track for weekly gains. Three people familiar with discussions among OPEC members and allied producers said the group may reach an agreement as early as Sunday to boost production by 548,000 barrels per day in September. A fourth source familiar with OPEC+ talks said discussions on volume were ongoing and the hike could be smaller. The U.S. Labor Department said the country added 73,000 jobs in July, lower than economists had forecast, raising the national unemployment rate to 4.2% from 4.1%. "We can blame U.S. President Donald Trump with the tariffs or we can blame the Federal Reserve for not raising interest rates," said Phil Flynn, senior analyst with Price Futures Group. "It looks like the Fed misjudged their decision on Wednesday." On Wednesday, the Fed voted to keep interest rates unchanged, drawing criticism from Trump and a chorus of Republican legislators. Oil lost more than 1% in the previous session, though Brent remained on course for a weekly gain of 4.6%, with WTI headed for a weekly gain of 6.5%. Oil traders have focused on the potential impact of U.S. tariffs, with tariff rates on U.S. trading partners largely set to take effect from next Friday. Trump signed an executive order on Thursday imposing tariffs ranging from 10% to 41% on U.S. imports from dozens of countries and foreign territories that failed to reach trade deals by his August 1 deadline, including Canada, India and Taiwan. Partners that managed to secure trade deals include the European Union, South Korea, Japan and Great Britain. "We think the resolution of trade deals to the satisfaction of the market – more or less, barring a few exceptions – has been the key driver for oil price bullishness in recent days, and further progress on trade talks with China in future could be a further confidence booster for the oil market," said Suvro Sarkar at DBS Bank. Prices were also supported this week by Trump's threats to impose 100% secondary tariffs on Russian crude buyers as he seeks to pressure Russia into halting its war in Ukraine. This has stoked concern over potential disruption to oil trade flows and the removal of some oil from the market. JP Morgan analysts said on Thursday that Trump's threatened penalties on China and India over their purchases of Russian oil potentially put 2.75 million barrels per day (bpd) of Russian seaborne oil exports at risk. China and India are the world's second and third-largest crude consumers respectively.
Reuters
an hour ago
- Reuters
OPEC+ expected to raise oil production further on Sunday, sources say
MOSCOW/LONDON, Aug 1 (Reuters) - Eight OPEC+ members will likely approve another oil output hike on Sunday, sources said, with the group still debating the final size of the increase for September amid fears of further supply disruptions from Russia and a seasonal slowdown in demand. The group has sped up output hikes in recent months citing low global stocks and rising demand. The meeting on Sunday, scheduled to begin at 11:00 GMT, comes amid fresh U.S. demands for India to stop buying Russian oil as Washington seeks ways to push Moscow for a peace deal with Ukraine. Fresh EU sanctions have also pushed Indian state refiners to suspend Russian oil purchases. OPEC+ could boost output by as much as 548,000 barrels per day in September - similar to what it did in August, three sources familiar with OPEC+ talks said. A fourth source said discussions on the volume were ongoing and the hike could be smaller. OPEC+ began output increases in April with a hike of 138,000 bpd followed by hikes of 411,000 bpd in May, June and July. OPEC+, which pumps about half of the world's oil, had been curtailing production for several years to support the market. But it reversed course this year to regain market share, and as U.S. President Donald Trump demanded OPEC pump more oil. OPEC and authorities in Saudi Arabia did not respond to requests for comment. If OPEC+ agrees to raise production by 548,000 bpd in September, it will have fully unwound its previous production cut of 2.2 million bpd while allowing the United Arab Emirates to raise output by 300,000 bpd. OPEC+ still has in place a separate voluntary cut of about 1.65 million bpd from eight members and a 2 million bpd cut across all members, which expire at the end of 2026. OPEC+ won't release more oil after September, U.S. bank Goldman Sachs said this week, citing rising U.S. oil output, slowing global economic growth and a build up in oil stocks after the end of the driving season in September. "It is too presumptuous to even start talking about the next phase of the voluntary cuts of 1.66 million bpd as those discussions haven't even started," said Amrita Sen, co-founder of Energy Aspects. Benchmark Brent oil prices hit a five-week high of $73.63 a barrel this week on risks of Russian oil supply disruptions and on fears Moscow would retaliate by closing a major U.S.-led oil pipeline from Kazakhstan. High oil prices typically catch Trump's attention and he has often demanded OPEC pump more to help him lower U.S. gasoline prices.
Reuters
an hour ago
- Reuters
Exxon beats profit estimates, eyes acquisition opportunities
HOUSTON, Aug 1 (Reuters) - Exxon Mobil (XOM.N), opens new tab beat Wall Street estimates for second-quarter profit on Friday as higher oil and gas output and low production costs offset the impact of lower crude prices. The biggest U.S. oil producer made clear that it is ready to take advantage of lower oil prices and make acquisitions, but only if it is confident that it can create additional value. The energy sector has struggled with price volatility as the OPEC+ group increased its production, pushing global benchmark Brent crude prices down 11% in the quarter. Global tariffs levied by U.S. President Donald Trump added to price weakness because they raised the prospect of a weakening global economy with knock-on effects for oil demand. Exxon's oil and gas production was the highest for any second quarter since the merger of Exxon and Mobil formed the company more than 25 years ago, Exxon Mobil said. "The second quarter, once again, proved the value of our strategy and competitive advantages, which continue to deliver for our shareholders no matter the market conditions or geopolitical developments," Exxon CEO Darren Woods said in a statement. Adjusted earnings during the second quarter were $7.1 billion, or $1.64 per share, surpassing consensus analyst estimates of $1.56 per share, data compiled by LSEG showed. Shares of Exxon declined 1.8% in morning trading. Exxon paid $4.3 billion in dividends and repurchased $5 billion worth of shares during the quarter. The buyback figure puts the company on track to meet its annual share repurchase goal of $20 billion. The company's main production areas include the Permian basin, the largest U.S. oilfield, as well as the prolific Stabroek Block off the coast of Guyana. The low cost of production in those fields allows them to stay profitable even during times of weaker oil prices, Exxon has said previously. Global production totaled 4.6 million barrels of oil equivalent per day (boepd) during the quarter, up from 4.5 million boepd in the previous three months. The start-up of Yellowtail, a fourth floating production, storage and offloading facility in Guyana, is anticipated next week, the company said. In a press briefing, Woods said he was keeping a high bar for potential acquisitions, searching for targets that have a similar culture to Exxon and where leaders from both companies can learn from one another. "We're not interested in buying volume," he said. "We're very focused on creating value." The Permian basin is one area of potential, given Exxon's technological work to increase oil recovery in that field, Woods said during a conference call with analysts. Exxon secured the lead in the Permian with $60 billion purchase of shale rival Pioneer in 2023. Last month, Exxon lost a legal challenge against Hess, one of its partners in Guyana, which cleared the way for rival Chevron CVX.N to complete its acquisition of Hess. Exxon argued it had a contractual pre-emptive right to purchase Hess' 30% stake in the Stabroek Block. Woods said Exxon sought out legal opinions from neutral, third parties about the joint operating agreement that governed the partnership between Exxon, Hess and China's CNOOC ( opens new tab in Guyana. "In every case, and I mean in literally every case, we were told that our rights were clear," Woods said. The arbitrators said that Exxon had a commercially reasonable argument but that it relied on a narrow textual interpretation, Woods said, adding that the company would take steps to strengthen future contracts as needed. Earnings from oil and gas production were $5.4 billion, down from $6.7 billion in the first quarter. Exxon said it expects lower scheduled maintenance in its refining business during the third quarter.
