Oman to at­tend OPEC meet­ing on Novem­ber 30, sup­ports oil cuts ex­ten­sion

Muscat Daily - - BUSINESS -

Oman, the largest crude oil ex­porter out­side OPEC, on Tues­day con­firmed it will be par­tic­i­pat­ing in the up­com­ing meet­ing of the Or­ga­ni­za­tion of Petroleum Ex­port­ing Coun­tries in Vi­enna on Novem­ber 30 to dis­cuss fur­ther mea­sures to sup­port global oil prices.

“I am go­ing to at­tend the meet­ing end of Novem­ber in Vi­enna,” H E Dr Mo­hammed bin Ha­mad al Rumhi, Min­is­ter of Oil and Gas, said.

H E Rumhi was speak­ing to re­porters on the side­lines of a sign­ing cer­e­mony of ex­plo­ration and pro­duc­tion shar­ing agree­ments for four Omani oil blocks at the Min­istry of Oil and Gas.

OPEC mem­bers and other ma­jor oil pro­duc­ers are ex­pected to de­cide at their Novem­ber 30 meet­ing whether or not to ex­tend the oil pro­duc­tion cuts be­yond March 2018. A num­ber of oil pro­duc­ing na­tions re­cently in­di­cated OPEC would con­tinue to sup­port prices through pro­duc­tion cuts till the end of 2018.

“There is a con­sen­sus among OPEC mem­bers to ex­tend the pro­duc­tion cuts agree­ment till the end of next year. So we will con­tinue to main­tain the same level of pro­duc­tion for the next year,” H E Rumhi said.

Oman has been an ac­tive par­tic­i­pant in the com­mit­tee con­sti­tuted by OPEC and non-OPEC pro­duc­ers to over­see the com­pli­ance of agreed cuts in their out­puts.

On whether Oman will con­tinue to be a mem­ber of com­pli­ance com­mit­tee to over­see out­put cuts, H E Rumhi said, “The agree­ment that we signed will end in Novem­ber but was re­cently ex­tended till March 2018. OPEC may pro­pose to change com­mit­tees, but I am not sure. We are ready to serve and sup­port this ini­tia­tive what­ever it takes.”

Since the be­gin­ning of the talks be­tween oil pro­duc­ers about out­put re­duc­tion amid weak oil prices, Oman has been one of the staunch sup­port­ers for pro­duc­tion cuts to ar­rest the fall in crude prices.

The sul­tanate had agreed to cut its oil out­put by around 45,000 bar­rels per day to com­ply with an ac­cord signed be­tween OPEC and non-OPEC pro­duc­ers. Be­fore slash­ing its pro­duc­tion as part of the agree­ment, Oman was pro­duc­ing nearly a mil­lion bar­rels per day.

On pos­si­bil­ity of deeper pro­duc­tion cuts to sup­port oil price, H E Rumhi said, “I don’t think OPEC mem­bers will agree to fur­ther cuts in pro­duc­tion.”

Though Oman agreed to cut its pro­duc­tion, the coun­try has con­tin­u­ously been in­vest­ing in ex­plo­ration and pro­duc­tion ac­tiv­i­ties and would con­tinue to do so next year also, H E Rumhi added.

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