OPEC'S CONSTRUCTIVE ROLE
OPEC - His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, the Emir of the State of Kuwait, yesterday received His Excellency Mohammad Sanusi Barkindo, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), for a meeting in Bayan Palace, Kuwait City. The Secretary General also met with the Deputy Prime Minister and Minister of State for Cabinet Affairs, His Excellency, Anas Khalid Al-Saleh. The meeting with the Emir was also attended by His Excellency Bakheet S. Al-Rashidi, Kuwait's Minister of Oil and Minister of Electricity and Water and Kuwait's Governor to OPEC Mr. Haitham Al-Ghais.
At the meeting, last year's implementation of the 'Declaration of Cooperation' by all participating countries was reviewed, as well as the role of Kuwait as Chair of the Joint Ministerial Monitoring Committee (JMMC) in 2017.
His Highness Sheikh Sabah pledged the continuous support of Kuwait for OPEC and the 'Declaration of Cooperation', as well as the institutionalization of OPEC and non-OPEC cooperation.
HH the Emir acknowledged the positive response of the oil market to the implementation of the 'Declaration of Cooperation' in 2017, including the unprecedented high levels of conformity with the voluntary production adjustments, with participating countries seeing average monthly conformity levels of more than 100% throughout the whole year.
HH Sheikh Sabah praised all 24 participating countries, both OPEC and non-OPEC, for their joint efforts towards restoring much needed oil market stability, as well as keeping faith in the collaborative approach which is at the heart of the 'Declaration of Cooperation'.
His Highness added that all participating countries and the global industry have benefited from the positive outcome and response of the oil market to the 'Declaration of Cooperation'. His Highness urged participating countries to continue to show faith in implementing the voluntary production adjustments in 2018, until the common objective of returning OECD inventories to the five-year average is achieved and the supply-demand balance is restored, both of which are essential in order to stimulate the return of further investment in the industry.
Additionally, His Highness commended OPEC and its Secretary General for successfully steering the affairs of the Organization during a turbulent period.
The meeting with HH Sheikh Sabah, was followed by discussions with the Deputy Prime Minister and Minister of State for Cabinet Affairs, His Excellency, Anas Khalid Al-Saleh. They discussed the current market situation and the implementation of the 'Declaration of Cooperation.'
Earlier in the day, the Secretary General met bilaterally with Kuwait's newly appointed Minister of Oil and Minister of Electricity and Water, to discuss preparations for the next JMMC meeting to be held in Muscat, the Sultanate of Oman, on 21 January 2018. They also discussed the implementation of the voluntary production adjustments in 2017, as well as the role of the JMMC in overseeing conformity levels. Kuwait will continue to serve as a member of the JMMC in 2018. The meeting was also attended by Kuwait's Governor to OPEC Mr. Haitham Al-Ghais.
Both the Minister and the Secretary General also reviewed the ongoing response of the market to the implementation of the 'Declaration of Cooperation' in 2017 and the prospects for 2018.
The Minister pledged to continue the tradition of Kuwait playing a constructive role as a consensus builder within OPEC, reflecting not only its status as a Founding Member of the Organization, but also its commitment to OPEC's cohesion as a group, and the Minister's determination to follow in the footsteps of his esteemed predecessor in playing an active role going forward.
The day concluded with OPEC officials presenting on the implementation of the 'Declaration of Cooperation' and the market situation to the Minister and other senior officials from the Ministry of Oil.
Today, the Secretary General and the accompanying delegation met with the management of Kuwait's national oil company, the Kuwait Petroleum Corporation. They listened to presentations on the current market situation and the impact of the Declaration of Cooperation on the oil market delivered by the OPEC Secretariat.
Later in the day, HE Mohammad Barkindo held a joint press conference with Minister Al-Rashidi and gave press interviews to a number of local media outlets.
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REUTERS - Brent LCOc1 futures fell 43 cents, or 0.5 percent, to $79.14 a barrel by 0218 GMT, after climbing 35 cents on Tuesday. Last week, the global benchmark hit $80.50 a barrel, the highest since November 2014. U.S. West Texas Intermediate (WTI) crude CLc1 futures eased 25 cents, or 0.4 percent, to $71.95 a barrel, having climbed on Tuesday to $72.83 a barrel, the highest since November 2014.
FT - Most oil majors can now cover dividends and capital expenditure at prices around $50 per barrel, meaning that, at $80, they make a healthy surplus.
EIA - The United States remained the world's top producer of petroleum and natural gas hydrocarbons in 2017, reaching a record high. The United States has been the world's top producer of natural gas since 2009, when U.S. natural gas production surpassed that of Russia, and the world's top producer of petroleum hydrocarbons since 2013, when U.S. production exceeded Saudi Arabia’s. Since 2008, U.S. petroleum and natural gas production has increased by nearly 60%.
PLATTS - China became the largest contributor to global LNG consumption growth in 2017. It surpassed South Korea as the world's second largest LNG importer and its share of global LNG demand is expected to converge with that of Japan by 2030.