Kuwait Sees Oil Price Rise on Lower Output, High Growth

Oil prices are likely to rise early next year amid signs of a decline in production of high-cost crude and improved economic growth, Kuwait's Oil Minister Ali al-Omair said Monday.

"There are signs that much of the high-cost oil has started to exit the market and this will help improve prices," Omair told reporters on the sidelines of the Kuwait Oil and Gas Conference.

There are indications that global economic growth will improve early in 2016, and this will also help boost oil prices, he said.

His statements come amid a string of optimistic forecasts by the Organization of the Petroleum Exporting Countries.

OPEC secretary general Abdullah el-Badri said in Kuwait Sunday that "OPEC is confident that it will see a more balanced market in 2016".

He also said production from outside OPEC was declining and could contract next year, reducing much of the global market glut that has depressed prices.

Qatar's Energy Minister Mohammed bin Saleh al-Sada, who is acting OPEC president, also said on Sunday there were signs of an oil price rise next year, adding that the oil price has "bottomed out". 

OPEC and non-OPEC producers are holding a technical meeting on October 21 to discuss the possibility of cutting production to boost prices.

But Omair said that so far no specific recommendations have been made ahead of OPEC's December 4 ministerial meeting.

At its past two meetings, last November and June this year, OPEC maintained its production at 30 million barrels a day, Omair said.

"As of now, there have been no calls for a big change to OPEC policy" at the next meeting, he added.

Oil prices climbed in Asia Monday, boosted by a weaker dollar and expectations that a rise in demand will ease a global supply glut.

In afternoon Asian trade, U.S. benchmark West Texas Intermediate for November delivery rose 0.89 percent to $50.07 and Brent crude for November added 0.91 percent to $53.13 a barrel.