The IEA group of industrialized nations announced last Thursday it would release about 2 million bpd of oil from emergency stocks over 30 days to boost supply and drive down crude prices.
But Gulf oil exporters say they will likely maintain their production at pre IEA stock release levels because demand for crude in other consuming countries is so strong.
“Kuwait is now producing 2.6 million bpd, so it is not really impacted by the IEA stocks,” the Gulf delegate said on Tuesday.
The surprise move by major consuming countries to drive down oil prices in a bid to boost economic growth was condemned by OPEC producers as unnecessary, with Kuwait and Saudi Arabia arguing they have plenty of spare capacity available to meet any demand.
OPEC failed in early June to agree an increase in output which its GCC members and the IEA had hoped would help maintain long term demand for oil by helping sustain economic growth.
Saudi Arabia, which holds most of OPEC’S spare capacity, said it would produce as much oil as needed after the talks in Vienna collapsed on June 8.
Kuwait’s oil minister said on June 20 the world’s fourth largest oil exporter was producing an average of 2.55-2.70 million bpd of crude, compared to a Reuters survey which pegged average Kuwaiti output in May at 2.44 million bpd.
