Saudi Crown Prince to Talk about Neutral Zone Oil Output in Kuwait: Source
TEHRAN (Tasnim) – Saudi Arabia's Crown Prince Mohammad bin Salman is reportedly expected to discuss the resumption of oil output from the Neutral Zone, which the kingdom's shares with Kuwait, during a trip to the Persian Gulf Arab state on Sunday, a source said.
Prince Mohammad will be accompanied by Energy Minister Khalid al-Falih during his trip to Kuwait, two separate sources said, Reuters reported.
The Saudi crown prince will hold talks with Kuwaiti Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah.
The closure of the Neutral Zone's jointly operated oilfields, mainly Khafji and Wafra, has become a political sticking point between the two Persian Gulf OPEC allies and senior officials have been trying to resolve the issue for months.
It was not clear whether the renewed talks on the Neutral Zone would result in the resumption of oil production from the area, one of the sources said.
Khafji was shut in October 2014 for environmental reasons and Wafra has been shut since May 2015 due to operating difficulties.
Any restart would come at a sensitive time for the oil markets as Washington presses Riyadh to increase oil production to bring crude prices down.
Oil prices rose more than 1 percent on Friday, with Brent climbing to a four-year high, as US sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production.
US President Donald Trump called Saudi Arabia's King Salman Saturday and they discussed efforts being made to maintain supplies to ensure oil market stability and global economic growth, Saudi state news agency SPA reported.
The call comes days after the US president called again on OPEC to boost crude output to cool the market ahead of midterm elections in November for US Congress members.
The resumption of the Neutral Zone's oilfields could add up to 500,000 barrels per day of oil output capacity to both Saudi Arabia and Kuwait.