Unstable global economic conditions overshadow OPEC meeting

OPEC's meeting due here on Wednesday would be held amid unstable global economic conditions namely the European debt crisis and weak economic growth, affirmed the Oil Minister of Kuwait. Dr. Mohammad Al-Busairi, also the Minister of State for National Assembly Affairs, said in an interview with Kuwait News Agency (KUNA), upon his arrival here late on Monday to take part in the scheduled meeting, prices of the crude oil would be also affected with slack of the US economy, inflation in China and comeback of the Libyan oil to the international market. These issues will be put on the table when the ministers of the member states of the Organization of Petroleum Exporting Countries hold their second scheduled meeting in Vienna, he said, expressing hope that conditions in the Middle East and the Gulf would remain stable. Kuwait and other Gulf states are very much keen on ensuring political and economic stability in this sensitive region, which has up to 60 percent of the global reserves of crude, Al-Busairi said. Al-Busairi indicated at keenness of the producers to ensure sufficient supplies to the market to maintain stable prices. He affirmed that the OPEC ministers, during the last meeting, held in June, could not reach a conclusive agreement on oil production, but he hoped that they would "reach a consensus formula" at their new meeting for sake of maintaining OPEC's role of contributing to the stability of the globaly economy. On current conditions of the market and the prices of oil, Al-Busairi said the market, presently, is balanced "and suffers no shortages or glut of supplies, thus the prices have been kept at the level above 100 dollars per barrel." This situation may create a positive atmosphere at the meeting and may prompt the ministers to opt to maintain the current ceiling of the output of the crude. On the energy sector at home, he forecast prosperous future for this vital sector, predicting that up to KD 76 billion might be spent for development of this sector by 2030, alluding to the project to build a new refinery, production of the environmentally-friendly fuel, in addition to other major projects in southeastern Asia, namely the petrochemicals complex, an oil refinery in China, joint energy projects in Vietnam and a large gas venture in Australia. Other gas projects are forecast to be launched in the coming few years with the aim of, tactically, securing domestic needs. He confirmed that Kuwait has recently increased its daily output of the crude to three million barrels and that it planned to up it to four million by 2020. Al-Busairi arrived in Vienna, late on Monday, and was received by Mohammad Saad Al-Sallal, the permanent delegate of Kuwait to international organizations here, a number of diplomats, OPEC Secretary General Abdullah Al-Badri and other eminent figures. The OPEC ministers are due to begin their conference on Wednesday, in the shadow of fluctuating oil prices on the international market.