Trump’s comments about Russian oil and Kuwait’s oil minister say OPEC is keeping an eye on the market. A group of nations whose economies are heavily dependent on the energy sector are at the centre of this delicate game. Decisions taken here have an impact well beyond their borders, whether they are related to alliances, price, or manufacturing. Some of these nations are now coming up with messages of caution and confidence in the face of fresh international tensions and surprising political remarks that are making headlines.
Kuwait claims that OPEC is closely monitoring the oil market and Trump’s remarks about Russia
Kuwait’s oil minister Tariq Al-Roumi said on Thursday that OPEC is closely monitoring global oil supply, demand trends, and U.S. President Donald Trump’s recent remarks on Russian oil. Al-Roumi told reporters, adding that he expects oil prices to be below $72 per barrel,
“Through OPEC, we are monitoring the market in terms of supply and demand, and we are monitoring the U.S. President’s statements.”
The minister described the market as healthy, with demand growing at a moderate pace. Oil prices slid about 1% to an eight-week low on Wednesday after U.S. President Donald Trump’s remarks about progress in talks with Moscow created uncertainty over whether the U.S. would impose further sanctions on Russia. Trump has threatened additional sanctions on Moscow if no moves are made to end the war in Ukraine.
PEC+ to Boost Output as Kuwait Highlights Spare Capacity Amid U.S. Tariffs on India
Washington imposed on Wednesday an additional 25% tariff on Indian goods, citing New Delhi’s continued imports of Russian oil. The CEO of Kuwait Petroleum Corporation said that the country’s quota production according to OPEC’s latest agreement is 2.548 million barrels per day (bpd), and it has the capacity to produce more. Sheikh Nawaf S. Al-Sabah said to reporters,
“We are producing this quota, and we have a production capacity that far exceeds that, and we use this capacity when necessary.”
OPEC and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September. The latest in a series of accelerated output increases aimed at capturing market share was in line with market expectations and marked a full and early reversal of the group’s largest tranche of output cuts, amounting to about 2.5 million bpd, or about 2.4% of global demand.
Regional actors have to balance internal objectives, international conflicts, and economic requirements
Kuwait and other nations face more than simply economic difficulties. Managing their place on the global scene is another aspect of it. Energy producers must exercise caution to preserve stability and collaboration in light of ongoing crises in areas of Europe and the Middle East, as well as political changes in Western countries, so that it does not look like this: Green hydrogen slowdown endangers climate goals.
Currently, some of the main issues that are influencing this whole energy situation are:
- The geopolitical remarks’ effect on oil prices.
- The prospects for energy cooperation between Russia and the West.
- Inflation and subsidy reform-related internal economic pressures
Group cohesion is essential for Kuwait and other OPEC countries. In the past, price wars and instability have resulted from disagreements over production levels. Member state statements to date have focused on alignment, indicating a common desire to keep a responsible and controlled approach. Investors, governments, and consumers will all be keeping an eye on OPEC’s future moves in the interim. Even small cues from important actors like Kuwait convey a message to a globe still influenced by oil politics, as the UN urges Australia, Turkey to resolve COP31 dispute.
GCN.com/Reuters