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Kuwait sees lower prices after OPEC output hike

KUWAIT CITY - Kuwait’s interim Oil Minister Mohammad Al Olaim said on Monday he expects lower oil prices as a result of a boost in OPEC output set to take effect next month.

‘We think that the demand-supply will be affected positively by the 500,000 barrels increase,’ said Olaim, referring to the production rise coming into force on November 1.

‘Everybody knows... high prices are not related to supply and demand issue,’ he said. ‘They are related to other things like geopolitics, refinery production in the US and others reasons.’

The OPEC cartel, of which Kuwait is a member, announced in September that it would boost production in a bid to shore up Western supply fears.

Oil prices have risen 50 percent over the past 12 months and on Thursday the price of a barrel reached a new 90-dollar high.

OPEC, which contributes around a third of world oil supplies, will meet in Riyadh for a summit on November 17 and 18.