Kuwait dismisses reports on extra oil supply for spot market

KUWAIT,8th April, 2017 (WAM) -- The Kuwait Petroleum Corporation (KPC) on Saturday quashed reports that Kuwait provided extra supply on the oil spot market.

The corporation has reiterated Kuwait's commitment to cut oil production in line with an OPEC and non-OPEC deal concluded late last year.

OPEC and non-OPEC producers agreed in December 2016 to cut their combined output by almost 1.8 million barrels per day (bpd) during the first half of 2017, with the possibility of a six-month extension.

The recent closure of the Shuaiba Refinery does not at all imply any decrease in Kuwait's crude output, or products, the KPC said in a statement carried by Kuwait News Agency, KUNA.

The KPC noted that it had earlier announced through the media that Shuaiba, whose daily production hit 200,000 barrels of oil products, would be closed as part of the strategic plan of the KPC and the affiliate companies.

It is part of the KPC strategy to develop the refining capabilities and modernize Kuwait's refineries, the statement said, noting that the decision to close down Shuaiba followed detailed studies that it would be vain to modernise the refinery or pump more investments in it.

The decision does oppose Kuwait's commitment to the OPEC-non-OPEC deal to restrict production, the KPC said. As a result of closing the Shuaiba Refinary, the KPC will have to reschedule its commitment to some clients, still in line with the deal.

It stressed that Kuwait has been a pioneer in committing itself to the agreement to decrease production aiming to restore balance to the oil market.

Shuaiba used to offer 30 types of oil products, mostly for export purposes, the KPC concluded.