Return of Neutral-Zone Oil Another Supply Headache for OPEC+ - Bloomberg:
Oil exports from the neutral zone between Kuwait and Saudi Arabia will resume from next month, adding more supply just as OPEC tries to cut output to stem a coronavirus-driven price rout.
Kuwait Petroleum Corp. told customers that production at the Khafji field in the zone has already restarted, with exports on track from April, according to people who had seen a notice sent by the company. That came after the state-owned producer said in mid-February that output from the Wafra field, also in the zone, would start within three months.
The neutral zone can pump a combined 500,000 barrels a day of crude but has been out of action for more than five years due to a spat between Saudi Arabia and Kuwait. The resumption of exports comes as OPEC is trying to limit production, proposing an additional 1.5 million barrels a day of output cuts to offset the economic hit from the virus.
Oil exports from the neutral zone between Kuwait and Saudi Arabia will resume from next month, adding more supply just as OPEC tries to cut output to stem a coronavirus-driven price rout.
Kuwait Petroleum Corp. told customers that production at the Khafji field in the zone has already restarted, with exports on track from April, according to people who had seen a notice sent by the company. That came after the state-owned producer said in mid-February that output from the Wafra field, also in the zone, would start within three months.
The neutral zone can pump a combined 500,000 barrels a day of crude but has been out of action for more than five years due to a spat between Saudi Arabia and Kuwait. The resumption of exports comes as OPEC is trying to limit production, proposing an additional 1.5 million barrels a day of output cuts to offset the economic hit from the virus.
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