KUWAIT CITY, June 9: According to the latest weekly economic report, OPEC+ convened its most recent meeting to bolster market equilibrium by regulating supply, thereby ensuring price stability, reports Al-Jarida daily. This cooperative effort involves major oil-exporting nations both within and outside OPEC, notably Saudi Arabia and Russia, respectively. Currently, their combined production stands at approximately 18 million barrels per day, with projections suggesting an increase to around 20.4 million barrels per day by 2026.

However, certain members, including Russia, Iraq, and Kazakhstan, failed to adhere to agreed-upon production cuts of 2.2 million barrels per day starting from January 2024. Nevertheless, they pledged to compensate for this shortfall by the end of the month. The meeting concluded with a reaffirmation of the voluntary production cuts set in motion in April 2023, amounting to 1.65 million barrels per day until the end of 2025.

Additionally, the extension of the secondary voluntary reduction initiated in November 2023, totaling 2.2 million barrels per day until September 2024, was agreed upon. Thereafter, a gradual restoration of production will occur until September 2025, contingent upon market conditions. Amidst prevailing uncertainty, the decision-making process remains adaptable, acknowledging the fluidity of market dynamics, particularly leading up to the implementation of changes in September.

Highlighting Kuwait’s heavy reliance on oil revenues and the inherent risks of such dependence, Al-Shall has underscored the importance of addressing unproductive expenditures. These risks include potential price downturns stemming from disagreements within OPEC+ and the broader market challenges despite previous production cuts. Kuwait’s future production forecasts fall short of expectations, posing significant challenges to its revenue streams. Consequently, delays in implementing necessary economic reforms could exacerbate financial pressures over time.