Kuwaiti Minister of Energy on oil prices

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• published: 21 Jul 2015
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1. Security measures outside Phoenicia hotel where OPEC summit is taking place 2. Various of journalists inside press room 3. Interior Phoenicia hotel 4. Set up shot for Kuwaiti's Minister of Energy Sheikh Ahmad Fahad Al Ahmad Al- Sabah 5. SOUNDBITE (English) Sheikh Ahmad Fahad Al Ahmad Al- Sabah, Kuwaiti's Minister of Energy: "There are two proposals until now. One proposal is to increase the production for one (million) and 1.5 million (m) and the other proposal is to increase the production for 2 (million) and 2.5 million (m. We are waiting for the closing session just to see which one of the proposals will be taken. As Kuwait, we will support the 2.5 million (m). I think that the market wants to know that there is no worries and there is more supply in the market and this is what we are trying to do since last night. We are trying to insure the market. OPEC will make sure they will increase their production and there will be a supply in the market and will make stability for this situation." 6. Set up shot for Lebanese Prime Minister Rafic Hariri: 7. SOUNDBITE (English): Rafic Hariri, Lebanese Prime Minister: "We are not a country producing oil so it will reflect on our economy beyond any doubt and I don't think personally that there is a real reason to see prices going that high. It is only impressions and expectations. I hope prices will go down after the meeting." 8. Various of delegations entering closed session STORYLINE: OPEC representatives arrived in Beirut on Thursday and expressed a common desire to lift their production ceiling. Delegates gathered for joint talks ahead of a formal meeting Thursday concerning output policy for the Organisation of Petroleum Exporting Countries. Kuwait, Qatar and Nigeria have backed the Saudi plan to raise OPEC's production ceiling to 26 million barrels - an increase of 2.5 million barrels. Under pressure from the United States and other major oil importers, Saudi Arabia has already boosted its actual output by 600,000 barrels a day, independently of OPEC. The United Arab Emirates' oil minister announced his country would raise production by more than 400,000 barrels per day. As he arrived at Beirut airport, minister Obaid bin Saif al-Nasseri said the hike aimed to calm the heat of prices. For the most part, such an increase would represent a return to a normal level of production for the United Arab Emirates after a lull in its output due to maintenance at the country's oil facilities in April. Kuwaiti Oil Minister Sheik Ahmed Fahd Al Ahmed Al Sabah said Kuwait would increase its output by 100,000 barrels later this month. Together, the three Gulf states expected to add more than 1 million barrels to global supplies. Analysts said such an increase in actual output would do much more to cool the market than a hike in OPEC's official ceiling. Although OPEC targets prices within a range of $22 to $28 for its benchmark blend of crudes, prices have exceeded this upper limit since December. OPEC produces more than a third of the world's crude. It is already pumping 2.3 million barrels above its ceiling, and many of the group's members are producing at close to their capacity. Oil prices plunged six percent on Wednesday, after the United Arab Emirates and Kuwait pledged during an OPEC meeting to join Saudi Arabia in adding fresh barrels to global supplies. Prices rebounded somewhat early Thursday as traders questioned OPEC's ability to pump enough oil to calm market fears of terrorists disrupting supplies. In London, contracts of Brent crude for July delivery were trading 36 cents higher at US$37.22 a barrel. July contracts of U.S. light crude were up 41 cents at US$40.37 in New York. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/a870ac09d36683c4f292247003abcf75 Find out more about AP Archive: http://www.aparchive.com/HowWeWork