Kuwaiti media reported that Kuwait and Saudi Arabia agreed to stop oil production in the joint Khafji field for a period of one month initially, as of the beginning of next June.
The Kuwaiti newspaper "Al-Rai" quoted unnamed sources as saying that the move comes within the Gulf trend towards additional production cuts, in addition to the planned reduction in the OPEC Plus agreement.
She pointed out that stopping production from the Khafji field would deprive the markets of an estimated eighty thousand barrels per day, which would be divided equally between the two countries.
Saudi Arabia and Kuwait began experimental production from the joint oil fields in February, after the signing of the Kuwaiti Foreign Minister, Ahmed Nasser Al-Muhammad Al-Sabah, and the Saudi Energy Minister, Abdul Aziz bin Salman, on December 24 last year, an agreement annexed to the division of the neutral zone, and the division agreement The submerged area adjacent to the area divided between the two countries.
The area divided on the Saudi-Kuwaiti border covers an area of approximately six thousand square kilometers, as it was not covered by the demarcation of the borders between the two countries in 1922.
Since the beginning of this month, the OPEC Plus alliance began implementing a two-month 9.7-million-barrel reduction in oil production in an attempt to eliminate the oversupply of oil in the global market, along with an estimated reduction of four million by the United States and other producers outside the alliance.
The International Energy Agency said that global oil production outside OPEC is falling faster than expected, led by US production.
The agency stated that production from outside OPEC decreased last April by 1.1 million barrels per day compared to the same month last year, and will decrease by an unprecedented amount of 6.7 million barrels per day during the period from March to June next.
In the context, Bloomberg reported that Saudi Arabia had notified a number of its clients in Asia to reduce the volume of oil exports during the next month, with its commitment to the agreement to cut production.
Bloomberg quoted oil sources as saying that the reduction in exports ranged between 20 and 30%, and that it included buyers in China and India.
This comes days after Saudi Arabia announced its intention to further reduce production by one million barrels per day, thus bringing its total oil production to 7.5 million barrels per day.