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Abu Dhabi, UAEWednesday 19 December 2018

Kuwait's oil minister says OPEC to discuss ending or extending production in November

Production cuts have been agreed to revive the price of oil and end a three year glut in the market

Opec and non-Opec countries will meet in November to discuss fate of a production extension, Kuwait's energy minister said  AFP / Joe Klamar
Opec and non-Opec countries will meet in November to discuss fate of a production extension, Kuwait's energy minister said AFP / Joe Klamar

OPEC will discuss at a meeting in November whether to extend or end production cuts, Kuwait's oil minister Essam al-Marzouq told Kuwait TV on Monday.

"At our next meeting at the end of November...the most important items will concern the fate of the agreement to extend or terminate the production cut," Marzouq told Kuwait TV in an interview.

He said oil inventories in recent weeks fell more than expected and that one-week forecasts were two million barrels a day, down from 6.5 million.

OPEC, Russia and other non-OPEC oil producing countries agreed in late 2016 to implement production cuts for a period of six months. That agreement was extended a further nine months in May 2017.

The extension of the deal cut 1.8 million barrels per day (bpd) from production by Opec members plus 11 non-member countries.

The cuts are aimed at reducing global inventories and ending a three yar oil glut that has halved the price of oil to about $50 a barrel.

Oil prices have gained on the reduction in output however high inventories and rising supply from producers not participating in the agreement like the US, have limited the rally.