Kuwait expects oil exporters to agree on mechanism to monitor supply

OPEC and allied non-OPEC exporters would review their crude output at a meeting in Algeria next month. (Reuters)
Updated 22 August 2018
0

Kuwait expects oil exporters to agree on mechanism to monitor supply

  • OPEC and allied non-OPEC exporters would review their crude output at a meeting in Algeria next month
  • Oil markets should remain stable until the end of the year

KUWAIT: OPEC and other oil exporting producers are expected to agree on a mechanism to monitor their crude production before the end of the year, Kuwaiti Oil Minister Bakhit Al-Rashidi said on Wednesday.

A committee set up by the Organization of the Petroleum Exporting Countries and allied non-OPEC exporters would review their crude output at a meeting in Algeria next month, he told reporters while touring an electricity station.

“The production numbers of OPEC and (countries) outside OPEC will be reviewed at the meeting in Algeria, and before the end of the current year, there will be an agreement on a mechanism to monitor output next year,” he said.

Oil markets should “remain stable” until the end of the year, he added.

The committee that will meet in Algeria on Sept.23, known as the JMCC, is chaired by Saudi Arabia and includes OPEC members Algeria, Kuwait, United Arab Emirates and Venezuela, as well as non-OPEC members Oman and Russia.

Iran asked to attend the meeting to defend its market share which could be impacted by US sanctions due to take effect on its oil industry in November. After months of underproduction aimed at bolstering crude prics, OPEC agreed with Russia and other oil producing allies to raise output from July. Saudi Arabia said the deal allowed countries able to produce more to meet the group’s overall conformity level, meaning some members, such as itself, could make up for shortfalls elsewhere. Iran, which faces US sanctions, disagreed and criticized Saudi plans to boost output above targeted levels.


Egypt stock market plunges as retail investors take flight

Updated 19 September 2018
0

Egypt stock market plunges as retail investors take flight

  • Biggest index drop in Egypt since mid-2016
  • Saudi Arabia outperforms in Gulf

LONDON: Egyptian stocks tumbled to their lowest level this year on Wednesday as retail investors took flight.
A sharp rise in Suez Canal revenues, a major foreign exchange earner for the country, was not enough to quell investors concerns about the strength of the currency.
The main Egyptian stock index lost 3.8 percent which some fund managers blamed on generally negative sentiment toward emerging markets worldwide as well as more local speculation about possible currency devaluation.
“Our channel checks suggest the sell-off in the Egyptian market is local retail and institutions driven, on currency fears and speculation over a further round of devaluation,” said Vrajesh Bhandari, portfolio manager at Al Mal in Dubai, Reuters reported.
“Selling is further intensified as margin calls are triggered and technical support levels break down. The country canceled three consecutive Treasury auctions, citing investors’ unrealistic yield demands.”
Egypt’s Suez Canal revenues rose to $502.2 million in August up 6.7 percent from a year earlier according to official data released on Wednesday.
Elsewhere regional stock markets closed mostly lower with the exceptions of Abu Dhabi which edged 0.2 percent higher and Saudi Arabia, the best regional performer, which rose by 1.1 percent.
Saudi stocks are benefiting from the strong oil price which eased slightly yesterday but still hovered just under $79.
OPEC and some other oil producers including Russia will meet in Algeria on Sept. 23 to discuss how to allocate supply increases within their quota framework to offset the loss of oil exports from Iran following the introduction of sanctions by the US.
Those measures will come into force on Nov. 4 and data suggests that buyers are already retreating from Iranian crude purchases.
A key question for the oil price as well as regional stock markets in the weeks ahead will be the extent to which other Gulf oil exporters can compenaste for the loss of Iranian supplies by pumping more.