Saudi Arabia and Kuwait are close to reaching an agreement surrounding the Neutral Zone, Bloomberg reported. It cited anonymous sources as saying that significant progress hs been made to resolve issues of sovereignty.
One source continued to say that both sides could meet in Kuwait as early as this month, following a June meeting in Riyadh.
However, even if oil production were to resume in the Neutral Zone, in the short-term it might not have a great impact on production as Saudi Arabia and Kuwait are tied to production cuts agreed upon by OPEC and its allies, which was extended for nine months at the start of July.
The nations could shift more of their production to the Neutral Zone to fill the gap in sour-heavy crude supply left by dwindling production in Venezuela and Iran.
