KUWAIT: Kuwait’s Oil Minister Tareq Al-Roumi voiced optimism about the future of the global oil market during the 61st OPEC+ ministerial meeting, saying the alliance’s ongoing efforts aim to ensure energy security and restore market balance.
In a statement following the virtual meeting, Al-Roumi said the fundamentals of the oil market are strong. “Kuwait supports efforts to stabilize the global oil market,” he added, noting that OPEC+ decisions are made in response to evolving market conditions.
He emphasized that the meeting reflected a collective commitment to the Declaration of Cooperation, which, he said, contributes to “supporting global economic growth and enhancing investor confidence in the oil market.”
OPEC+, which produces nearly half of the world’s crude, has shifted strategy this year—moving from years of output cuts to phased increases. Eight member countries began raising output in April, and the group’s latest agreement calls for a boost of 548,000 barrels per day in August. Kuwait’s delegation to the OPEC+ meeting included its OPEC Governor Mohammed Al-Shatti and National Representative Sheikh Abdullah Sabah Salem Al-Humoud Al-Sabah.
Earlier this month, Kuwait Petroleum Corporation (KPC) also signaled confidence in demand growth, particularly in Asia. “We’re seeing some potential tightness in the market, which gives us an opportunity to capture market share in the future,” said KPC CEO Sheikh Nawaf Al-Sabah in an interview with Bloomberg TV on the sidelines of an OPEC seminar in Vienna.
Sheikh Nawaf said that recent interactions with global clients suggest persistent demand beyond the summer driving season. “There are indications that the customer isn’t concerned about a peak in demand—certainly in China,” he said. “They’re also looking toward the quality of the supplier, and that is us, because we are committed to a low-cost and low-carbon intensity barrel.”
Bloomberg reported that Kuwait’s crude exports surged to a 19-month high in June, with most volumes flowing to China, Japan, and South Korea. Demand growth this year is expected to reach between 1 million and 1.3 million barrels per day, according to Sheikh Nawaf.
Despite its substantial reserves, Kuwait remains heavily dependent on oil revenues. It recorded a $5.23 billion budget deficit in the 2023–2024 fiscal year, based on an average crude price of $86.36 per barrel. For 2025–2026, the draft budget projects a deeper shortfall of $20.43 billion, as oil revenues are forecast to fall 5.7 percent with prices averaging $68 per barrel, according to the Ministry of Finance. — Agencies