Saudis, Kuwait Agree to Resume Oil Output at Shared Fields - Bloomberg:
Saudi Arabia and Kuwait agreed to resume oil production in a shared border region more than four years after halting output.
Their agreement allows for “the resumption of oil production from the joint fields,” the Saudi energy ministry said on Twitter. The oil fields in the so-called neutral zone can produce as much as 500,000 barrels a day -- more than each of OPEC’s three smallest members pumped last month.
Chevron Corp., which operates the area’s Wafra field together with Kuwait Gulf Oil Co., expects full production there to be restored within 12 months, it said Tuesday in a statement. Wafra has been shut down since May 2015.
A resumption on that timetable would be unlikely to add significant amounts of oil to the market within the current duration of the Organization of Petroleum Exporting Countries’ production cuts deal, which runs until the end of March. Even so, the agreement to re-start the fields could weigh on market sentiment amid concerns about faltering growth in world demand and rising supply from the U.S. and other producers.
Saudi Arabia and Kuwait agreed to resume oil production in a shared border region more than four years after halting output.
Their agreement allows for “the resumption of oil production from the joint fields,” the Saudi energy ministry said on Twitter. The oil fields in the so-called neutral zone can produce as much as 500,000 barrels a day -- more than each of OPEC’s three smallest members pumped last month.
Chevron Corp., which operates the area’s Wafra field together with Kuwait Gulf Oil Co., expects full production there to be restored within 12 months, it said Tuesday in a statement. Wafra has been shut down since May 2015.
A resumption on that timetable would be unlikely to add significant amounts of oil to the market within the current duration of the Organization of Petroleum Exporting Countries’ production cuts deal, which runs until the end of March. Even so, the agreement to re-start the fields could weigh on market sentiment amid concerns about faltering growth in world demand and rising supply from the U.S. and other producers.
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