Oil price will reach $60 a barrel: Kuwaiti oil minister

15 December 2016

Opec and non-Opec producers agreed to nearly 1.8 million b/d production cut from January 2017

Kuwait’s new minister for oil electricity and water Essam Abdulmohsen al-Marzouq has suggested that the price of oil would reach $60 a barrel at the start of 2017, following Opec and non-Opec decisions to cut production.

The price of Brent is currently trading at $54 a barrel.

Al-Marzouq, who took the oath of office early December following Kuwait’s elections on 26 November, is also the chairman of Kuwait Petroleum Corporation.

Opec member countries agreed to cut production by 1.2 million barrels a day (b/d) on 30 November in a historic accord - the first in eight years.

Twelve non-Opec producers led by Russia have also agreed to cut production by 558,000 b/d, with Moscow agreeing to slash 300,000 b/d starting January 2017.

The production cuts will be in place for six months.

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