OPEC and non- OPEC ministers convened in Kuwait on Saturday for an unofficial meeting of a joint ministerial committee
- The committee monitors compliance with the oil supply cut agreement
(OPEC, Russia and other producers agreed to cut output by about 1.8 million barrels per day in January 2017)
Statement issued said the ministers (from Saudi Arabia, the United Arab Emirates, Kuwait and Algeria, with from non-OPEC Oman) “stressed the need to maintain the existing cooperation and continue the successful endeavour carried out by the participating countries”
- also “emphasised the need for healthy market conditions that stimulate adequate investments in the energy sector, in order to ensure stable oil supplies are made available in a timely manner to meet growing demand and offset declines in some parts of the world,”
The approaching expiration of the agreement and indications a likely loosening (somewhat) in supply constraints has served to weigh on the oil price. Watch for further developments but this sort of statement indicates to me not to expect a free for all in supply once the agreement expires.