Kuwaiti Prime Minister Considers $100 per barrel Crude Oil Price Fair

Kuwait’s oil minister said in a recently published comment that an oil price per barrel of $100 is fair and his country is making about 1.3 million crude barrels daily.

Current Brent crude prices fell by 50 cents to $112.66 per barrel. That rate is lower by 5.5% compared to the other days of this month following a consecutive drop for five days.

Crude oil prices in the United States also dropped for the fifth straight day, losing $1.14 a barrel to reach a low rate of $96.80 before a slight recovery happened.

The prime minister said that it was essential for Kuwait to stop its dependency on a high oil price. However, it refused to predict price developments in the future. He further added that he anticipates about 7 to 9 companies to bid good offers for the refinery projects planned in Kuwait by May’s end.

Kuwait plans a construction project amounting to 4 billion dinar or $14.4 billion. The project is aimed at increasing the country’s refinery capacity and for two other upgrades the Gulf nation had been planning.

The delayed project for the al-Zour refinery, which aims to produce 615,000 barrels daily, will be the fourth refinery of the OPEC member nations. The prime minister said that it must begin operations by 2018.

Moreover, the prime minister said that Kuwait had referred a contract for gas development between Kuwait Oil Co and Shell to prosecutors. The purpose of which is to investigate the contract following the questions raised by the investigative committee’s report regarding the deal.

The referral was made during the prime minister’s first days in the month of February.

A specially created committee has been looking into the contract, valued at an estimated $800 million USD. The prime minister’s predecessor had formed the committee.

The prime minister also requested prosecutors to check diesel smuggling reports that involves Kuwait.

By: Chris Termeer