Kuwait’s oil minister said on Tuesday oil prices could pick up in the second half of 2015.
“The surplus in the market is currently 1.8mn barrels a day and it is the primary reason for the fall in oil prices,” Ali al-Omair said at a seminar in Kuwait.
Members of the Organisation of the Petroleum Exporting Countries (OPEC) agreed that there was no need for another meeting before June, he added.
“The price of oil will improve if the production of high-cost oil stops,” Omair said, referring to the production cost of shale by the United States- $70 to $75 a barrel.
Kuwait’s development projects will not be affected by the drop in oil price, Omair said, adding that the government was looking into the possibility of cutting subsidies on fuel, water and electricity.
New prices for diesel, kerosene and jet fuel will be introduced at the beginning of the new year after subsidies on those fuels are reduced, Omair added.
Oil fell to close to $59 a barrel for the first time since May 2009 on Tuesday, while Chinese factory activity and weakening emerging-market currencies added to concerns about demand.
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