Kuwait’s Oil Minister, Tareq Al-Roumi, has indicated that oil prices are likely to remain below $72 per barrel in the near future. As of Thursday, oil was trading at approximately $67 per barrel. Al-Roumi’s comments reflect ongoing monitoring by both Kuwait and the Organization of the Petroleum Exporting Countries (OPEC) of market conditions, particularly in light of recent developments from the United States.
Al-Roumi emphasized the importance of keeping an eye on statements from U.S. President Donald Trump and his administration, noting, “Through OPEC, we are monitoring the market in terms of supply and demand, and we are monitoring the U.S. President’s statements.” Two notable actions from President Trump could significantly influence oil markets.
On Wednesday, Trump announced that his special envoy, Steve Witkoff, had a “highly productive meeting” with Russian President Vladimir Putin, suggesting potential shifts in international cooperation. Conversely, Trump also signed an executive order imposing a 50% tariff on Indian goods, specifically targeting the country’s imports of Russian crude oil. This tariff, the highest under current U.S. policy, will take effect 21 days after August 6.
Kuwait’s oil minister reaffirmed that the oil market remains healthy, with demand increasing at a “moderate pace.” This sentiment was echoed by Shaikh Nawaf Al-Sabah, CEO of the Kuwait Petroleum Corporation (KPC), who stated that Kuwait is currently producing 2.548 million barrels per day (bpd), in line with its latest OPEC+ quota.
Al-Sabah highlighted Kuwait’s production capacity, noting, “We have a production capacity that far exceeds that, and we use this capacity when necessary.” OPEC+ is set to conclude the unwinding of its largest production cut in September 2023, which will see an increase of 547,000 bpd. However, the remaining production cuts of 1.66 million bpd will remain in effect until late 2026, unless the market conditions dictate an earlier adjustment.
As these developments unfold, both Kuwait and OPEC continue to assess the landscape, preparing for potential impacts on the oil market driven by geopolitical factors and economic policies. The trajectory of oil prices remains uncertain, with significant implications for global energy markets and economies reliant on oil exports.
