(MENAFN- Arab Times) OPEC-member Kuwait is likely to keep producing around 3 million barrels of oil a day over the next few months due to strong demand, the head of state-run Kuwait Oil Company (KOC) said on Tuesday.
OPEC price dove Kuwait raised its production by around 600,000 barrels a day (bpd) from July to around 3 million of crude oil in August.
The producer is likely to keep pumping around current levels of 3 million bpd due to more demand, KOC director Sami Al-Rushaid said.
"I expect this will continue," Rushaid told reporters on the sidelines of a conference in Dubai.
Oil output by the big three Gulf producers rose by around 400,000 barrels per day (bpd) in August from July as the sharp rise in Kuwaiti output outweighed cuts by Saudi Arabia and the United Arab Emirates.
A senior Gulf source said at the same conference that the majority of OPEC countries wanted to see oil prices fall to around $100, compared to over $113 a barrel on Tuesday.
He said KOC was producing almost 700,000 bpd from Kuwait's northern fields and that it was on track to reach 1 million bpd from those fields by 2017.
He said the state run oil producer would tender for associated gas facilities needed to increase oil production in the area towards the end of 2013.
Meanwhile, price of Kuwaiti crude oil dropped in Monday trading $1.08 settling at $113.05 pb compared to $114.13 pb on Friday. The drop in Kuwaiti crude oil prices despute the rise of oil in international markets cames before launch of a new program in the US to revive the economy, resulting in greater demand for the crude.
Prices of the forward transactions for the Brent crudes climbed as prices for the October deliveries posted $116.97 pb, while the light American crude for the October delivery also rose, yesterday, reaching $99.19 pb.
World oil prices slid on Tuesday as investor sentiment was marred by global economic concerns, one day after the market experienced a sudden and mysterious plunge, dealers said.
Brent North Sea crude for delivery in November dropped 34 cents to $113.45 a barrel in late afternoon London trading.
New York's main contract, West Texas Intermediate (WTI) or light sweet crude for October, pulled back 31 cents to $96.31 a barrel.
"The sudden sharp decline in crude oil prices late last night in New York remains a mystery today," said CMC Markets analyst Michael Hewson.
"However, the fact is that a slowing growth outlook is never a particularly good environment for crude prices, given that a rise in prices merely exacerbates economic problems.
"For that reason the decision to embark on unlimited bond purchases remains a risky one on the part of the Federal Reserve."
In unusually volatile deals, Brent and WTI oil prices suddenly tumbled by about $4 in intraday trade late on Monday.
"Yesterday saw a mysterious drop in oil prices: within just a few minutes, WTI and Brent both fell for no apparent reason - without there being any impetus from the currency side, from the equity markets or in terms of other news," said Commerzbank analyst Carsten Fritsch.
"Such pronounced price fluctuations give rise to criticism of high-frequency trading and the excessive influence of speculative investors on the most important commodity, and are likely to be closely monitored by policy-makers and stock exchange regulators."
Some market watchers suggested that the price slump could be the result of a so-called "fat finger" trading error.
Traders had also been spooked by market rumours that US President Barack Obama's administration would release strategic supplies of gasoline (petrol) to lower prices ahead of the November 6 election.
Hewson added: "Speculation about a possible release of reserves from the SPR (Strategic Petroleum Reserve) remains on the table.
"In any case, even if plans were imminent, US officials are unlikely to sell into a rising market, releasing reserves two months before an election would undoubtedly raise political questions."
In another report, OPEC's reference crude oil basket price fell to $113.72 a barrel on Monday from $114.87 the previous session, OPEC said on Tuesday.
The reference basket comprises 12 crudes: Algeria's Saharan Blend, Angola's Girassol, Iran Heavy, Iraq's Basra Light, Kuwait Export, Es Sider from Libya, Nigeria's Bonny Light, Qatar Marine, Saudi Arabia's Arab Light, Murban from the UAE, Venezuela's Merey and Oriente from Ecuador.
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