OPEC’s decision to cut an extra 500,000 barrels of oil a day from the global market is likely to create a positive ripple effect on oil prices, said a Kuwaiti minister on Sunday. A thaw in the United States’ trade war with China, coupled with the major consequences of Brexit have helped restore stability to oil prices well into next year, Oil Minister Dr. Khaled AlFadhel told reporters after talks involving the Organization of Arab Petroleum Exporting Countries (OAPEC).
On a gas export deal with Iraq, the minister said the agreement has reached its “first phase,” and will come into effect once joint feasibility studies are completed. Similarly, he said talks are ongoing between Kuwait and Saudi Arabia pending an agreement on the resumption of oil output in a “divided zone” between the two Gulf neighbors.