Oil prices slide to unexpected lows: Kuwait

Kuwait's oil minister Ali al-Omair said the global oil price has dropped unexpectedly low and that the Opec member will "look after its own interests".

The minister added the country has "no enemies" amongst fellow oil producers, with its production of 2.82mn b/d only accounting for 3.1pc of the global total, according to state-run news agency Kuna. Al-Omair's comments follow calls this week by fellow Opec members Iran, Algeria and Venezuela to review Opec's decision on 27 November to maintain its agreed 30mn b/d production target. Many oil producers' economies are suffering, with the Brent crude price more than halving since June, to around $48.50/bl.

UAE oil minister Suhail Mohamed Faraj al-Mazrouei defended Opec's decision earlier this week, saying the glut in the market is around 2mn b/d. The UAE's production was 2.75mn b/d last year.

"Even if you reduce the [production] ceiling, I am sure someone will take that advantage and produce that oil. Then you will have the problem again," Mazrouei said on 13 January. "If we had taken such a decision [to cut Opec production], we would be regretting it now as it would not have made an impact."

Opec members in the Gulf have not directly commented on the recent discord amongst its members, and Mazrouei said there will not be an emergency Opec counsel before the next scheduled meeting on 15 June.

Kuwait and the UAE are part of a core group of Gulf producers that are able to weather the volatility for at least three years, after accumulating considerable financial buffers from buoyant oil prices since 2010. But Mazrouei said he doubts oil prices will climb in the short-term and shale oil producers may struggle.

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