A summit of OPEC and non-OPEC, as suggested by Venezuela, would be pointless as independent producers are not committed to cutting output, Kuwait's oil minister said on Sept. 28.
"The problem is that there is no commitment from the countries outside OPEC on what they would offer for the stability of prices," Ali al-Omair said.
"Their request from the OPEC members is to... reduce production while others continue pumping, and then we lose our market share."
Cash-strapped OPEC-member Venezuela has for months been pushing for an emergency OPEC meeting with Russia to stem the tumble in prices.
The Organization of the Petroleum Exporting Countries is due to meet next in December
Saudi Arabia too sees no need to hold a heads of state summit nor interfere in the oil market. One OPEC source said that should such a meeting produce no concrete outcome, it would have a negative impact on prices.
Earlier this month, Venezuelan President Nicolas Maduro reiterated calls for action within OPEC and beyond OPEC, mentioning controls on output and price bands, adding he would travel shortly to lobby for a meeting.
Omair said global crude oversupply now is about 1.8 million barrels per day, adding that if oil demand continued to grow and supplies from U.S. shale drillers stayed at current levels, oil prices would rise by the end of 2015. He did not give further details.
Oil prices fell on Sept. 28, paring some of last week's 2 percent rally, despite evidence of slowing U.S. production and a fourth weekly increase in U.S. investor holdings of crude futures.
Recommended Reading
Chevron Hunts Upside for Oil Recovery, D&C Savings with Permian Pilots
2024-02-06 - New techniques and technologies being piloted by Chevron in the Permian Basin are improving drilling and completed cycle times. Executives at the California-based major hope to eventually improve overall resource recovery from its shale portfolio.
Prairie Operating Acquires More D-J Basin Assets for $94.5MM
2024-01-15 - Houston-based Prairie Operating Co. is scaling its D-J Basin footprint with a $94.5 million acquisition of Nickel Road Operating LLC.
US Drillers Add Oil, Gas Rigs for First Time in Three Weeks
2024-01-19 - U.S. energy firms this week added oil and natural gas rigs for the first time in three weeks
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
US Gas Rig Count Falls to Lowest Since January 2022
2024-03-22 - The combined oil and gas rig count, an early indicator of future output, fell by five to 624 in the week to March 22.