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Kuwait: Oil price improvement linked to growth in China and Japan’s economies

“Forecasts are built according to world economy growth indicators, daily oil production volume, supply and demand”

Kuwaiti Oil Minister, Ali Al Omair, announces that the improvement and growth in the global economy in the short term will positively reflect on oil prices and demand, Bahrain-based Al Wasat Newspaper reports.

In his statement about the World Monetary Fund’s forecasts, Al Omair says, “Forecasts regarding oil prices are built according to world economy growth indicators, daily oil production volume, supply and demand.”

He adds that there is a slowdown in global growth, especially in East Asia, particularly in the economies of China, Japan and India, and, whenever the performance of these economies improves, the oil prices will improve gradually.

He adds that “We hope that world economy improves and witnesses growth in the short term, which will have a positive reflection on oil prices and demand.”

The Kuwaiti minister points out that, “regarding the possibility of reducing oil production ceiling to overcome the accession of Iran and Iraq to producing countries and the impact on oil prices, we are working under OPEC’s umbrella and there is no decision yet about reducing production until the scheduled meeting on December 4, 2015.”