Kazakhstan Minister Says Oil Price Above $70-$75/bbl Likely Suits All Countries

SEATTLE (Oil Monster): Kazakhstan's Energy Minister Erlan Akkenzhenov said on Thursday that an oil price above $70-$75 per barrel is likely to be suitable for all countries.

He dismissed criticism over Kazakhstan's oil production exceeding quotas set by the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, due to the country's relatively small output.

Some members of the group have complained about Kazakhstan's overproduction. Analysts and industry sources have also cited Kazakhstan's excessive oil output as one of the reasons behind OPEC+'s decision to speed up production hikes.

Akkenzhenov, who took over Kazakhstan's energy ministry in March, singled out U.S. tariff policy as a reason behind volatility on global energy markets.

Oil prices rose by about $1 a barrel to above $65 per barrel on Thursday after a U.S. court blocked most of President Donald Trump's tariffs, while the market was watching out for potential new U.S. sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July.

"We wake up each morning and expect to hear the news on some countries' politics," the minister told reporters. He said that Kazakhstan's share in global oil production is less than 2%.

According to an industry source, who spoke on condition of anonymity due to the sensitivity of the situation, Kazakhstan's crude oil production, excluding gas condensate, averaged 1.86 million barrels per day on May 1-19, including 932,000 bpd at Tengiz.

Courtesy: www.reuters.com