Oman ‘ready to cut oil production up to 10%’

Energy minister says other producers should do the same

Oman said it was ready to cut its oil production by five to 10 per cent and “do anything” needed in order to stabilise the market, with a top spokesman from the Gulf Cooperation Council (GCC) country saying that other oil producers should do the same.

Mohammad Al Rumhy, Oman’s Minister of Oil and Gas, said Oman was willing to cut “whatever was needed” in its oil production to help the market.

He added that he has spoken with other GCC ministers about prospects of cutting Opec’s (Organisation of Petroleum Exporting Countries) production, but that everyone had “different philosophies”.

Critic of raising supply

Al Rumhy has long been a critic of Opec’s policy to raise supply in favour of maintaining market share — a policy that has resulted in oil prices falling to their current lows below $30 a barrel. Oman currently produces around one million barrels per day — a figure that is not expected to rise further this year, the minister said.

“I have said on the record that Oman is ready to do anything that will stabilise and improve the oil market,” he said.

Speaking to reporters on yesterday, Al Rumhy added that the new wave of oil supply coming into the market after Iranian sanctions were lifted is not expected to have a significant impact on oil prices.