Kuwait Seeks Mechanism to Monitor OPEC Supply

OPEC and other oil exporting producers are expected to agree on a mechanism to monitor their crude production before the end of the year, Kuwaiti Oil Minister Bakhit al-Rashidi said.

A committee set up by the Organization of Petroleum Exporting Countries and allied non-OPEC exporters would review their crude output at a meeting in Algeria next month, he told reporters while touring an electricity station, Reuters reported.

“The production of OPEC and countries outside OPEC will be reviewed at the meeting in Algeria, and before the end of the current year, there will be an agreement on a mechanism to monitor output next year,” he said. Oil markets should remain stable until the end of the year, he added.

The joint OPEC-Non-OPEC Ministerial Monitoring Committee, which will meet in Algeria on Sept.23, is chaired by Saudi Arabia and includes OPEC members Algeria, Kuwait, UAE and Venezuela, as well as non-OPEC members Oman and Russia.

Iran asked to attend the meeting to defend its market share that could be impacted by US sanctions due to take effect on its oil industry in November.

After months of underproduction aimed at bolstering crude prices, OPEC agreed with Russia and other oil producing allies to raise output from July.

Saudi Arabia said the deal allowed countries able to produce more to meet the group’s overall conformity level, meaning some members, such as itself, could make up for shortfalls elsewhere.

Iran, which faces US sanctions, disagreed and criticized Saudi plans to boost output above targeted levels.

Nonetheless, Saudi Arabia has failed to demonstrate its ability to boost production.