Kuwait has joined its mid-east neighbor Saudi Arabia, whom both are two of OPEC’s largest members, stating that there would be no immediate cut to the production of oil amid tumbling oil prices, according to Bloomberg.
On Friday, Venezuela’s Foreign Minister Rafael Ramirez called on an emergency OPEC meeting, ahead of its planned November 27 meeting, to urgently discuss action that is needed to be taken to arrest the plunge in oil prices.
On Sunday, Kuwait’s Oil Minister, Ali al-Omair said that although oil producing nations prefer that prices were higher, there is “no room” for them to achieve that by cutting supply, according to the Kuwait News Agency (KUNA), the Bloomberg report said.
The Oil Minister was also quoted as saying that a price range of $76 to $77 per barrel may be the level that could end the plunge in oil price, as this was the production cost in the U.S. and Russia, according to KUNA, as reported by Reuters.
As both Kuwait and Saudi Arabia have stated that there will be no short-term cuts, this comes as a signal that the group of OPEC countries is not likely to take heed to Venezuela’s desperate calls for an urgent emergency meeting.
“If we had a way to preserve the stability of prices or something that would bring it back to previous levels, we would not hesitate in that,” Ali Al-Omair said in remarks reported by KUNA. “There is no room for countries to reduce their production,” The Oil Minister added, without giving details, adding that Kuwait had not received an invitation to hold any kind of emergency meeting, Reuters reported.
Sources: Bloomberg, Reuters
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