KUWAIT ENERGY DIALOGUE:OPEC PRODUCTION LIKELY TO

C O N F I D E N T I A L KUWAIT 002484

SIPDIS

STATE FOR NEA AND EB

E.O. 12958: DECL: 06/06/2015
TAGS: EPET ENRG ECON KU OIL SECTOR
SUBJECT: KUWAIT ENERGY DIALOGUE:OPEC PRODUCTION LIKELY TO
REMAIN AT 30.3 MILLION BPD

REF: STATE 96427

Classified By: Ambassador Richard LeBaron for reasons 1.5 (d).


1. (C) Ambassador spoke with Energy Minister Shaykh Ahmed
Al-Fahd Al-Ahmed Al-Sabah on June 6 to discuss points in
reftel. He appreciated information about U.S. energy
planning and initiatives. As for OPEC production, he noted
that at the Isfahan meeting production had been around 28.8
million barrels per day (bpd),while since then it had
climbed to 30.3 million bpd. He said that he was confident
that official production would stay at these levels through
the next OPEC session, noting that that prices are still
high. He said that his soundings with OPEC colleagues
indicated that they are comfortable with keeping production
levels stable.


2. (C) Shaykh Ahmed has made a number of statements to the
press indicating the same approach as he outlined to
Ambassador. Most recently, Reuters reported that Shaykh
Ahmed indicated on June 6 that OPEC might raise its output
ceiling at the June 15 meeting in Vienna. Reuters quoted
Shaykh Ahmed as commenting that "Prices are too high and we
have to do something. So, maybe we'll increase the ceiling
because of the prices." However, he cautioned that since
OPEC member states are already exceeding their production
quotas, raising the ceiling would likely have little impact
on OPEC's overall output.


3. (C) Shaykh Ahmed will travel to the United States at the
end of the month with the Kuwaiti Prime Minister. Ambassador
noted that there might be an opportunity to meet with
Secretary Bodman. The minister said he was eager to do so,

SIPDIS
as he had not met the Secretary, while many of his
counterparts had.
LEBARON