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Kuwait welcomes Saudi, Venezuelan, Mexican recommendation to boost oil production March 2 move characterized by Sheik Saud Al Sabah as step in unifying positions of OPEC, non-OPEC countries by The Associated Press
Kuwait’s oil minister welcomed a recommendation by three major oil producers for a production boost in an effort to ease global oil prices from their highest levels in nine years.
Sheik Saud Al Sabah said in a statement that the position of Saudi Arabia, Venezuela and Mexico was a “step in the right direction toward achieving a unified position by OPEC and non-OPEC countries” in the effort to maintain market stability.
Oil ministers of the three countries announced the agreement March 2 after a meeting in London, but they did not specify the timing or the amount of the output increase.
They said further details would come at the March 27 meeting of members of the Organization of Petroleum Exporting Countries.
Mexico is not an OPEC member, but it agreed to cooperate with the group in whatever decision it may reach at the meeting in Vienna, Austria.
Sheik Saud said OPEC-member Kuwait supports efforts that would lead to “stability in the market and serve the common interests of oil exporting and consuming countries.”
He said any decision to be made by OPEC will take into consideration market stability and supply guarantees to avoid price volatility and its harmful effect on world economic growth.
Kuwait, which pumps its OPEC quota of around 1.83 million barrels a day, had previously taken a hard-line stand in favor of maintaining production restraints after the 1998 collapse of oil prices.
However, Sheik Saud said last month after a meeting with U.S. Energy Secretary Bill Richardson that Kuwait understands American concerns over high oil prices and indicated he was ready to review his position to achieve stability in the market.
Prices surged after OPEC made deep cuts in production last March, and world oil production has fallen to 75 million barrels. The world consumes about 77 million barrels a day.
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