Egypt to attend OPEC oil supply cut meeting as observer

OPEC“Egypt is expected to attend the conference for the first time,” said one of the sources in OPEC and the industry, declining to be identified.

Egypt is attending the meeting on May 25 as an observer but will not be lowering supply, Petroleum Minister Tarek El Molla said. Egypt’s oil consumption outpaces its production, which is estimated at 700,000 bpd.

“Egypt will participate as an invitee but is not cutting production. We are short on products and we do not export crude,” he said.

The Organization of the Petroleum Exporting Countries, Russia and other producers agreed last year to curb production by 1.8 million barrels per day (bpd) for six months from Jan. 1.

Oil prices have since gained support but global inventories remain high, pulling crude back towards $50 a barrel and putting pressure on OPEC to extend or possibly add to the cuts at least until the end of 2017.

OPEC has been urging other producers to join the supply pact and, together with participating non-member countries, meets to set policy on May 25 in Vienna. Turkmenistan, along with Egypt, are also due to attend.

(Source: Reuters)


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