Oman will support oil cuts extension, says H E Aufi

May 16, 2017

Oman will support an extension of the oil production cut agreement between OPEC and non-OPEC producers, according to H E Eng Salim al Aufi, Undersecretary of the Ministry of Oil and Gas.

“We have said many times that Oman is in support of anything that will raise and sustain the oil price. So if it turns out to be an agreement to continue the production cuts for another six months, or whatever, Oman will definitely support,” H E Aufi said on Tuesday.

He was speaking to reporters on the sidelines of an event celebrating the second anniversary of Maharat’s brand establishment at Knowledge Oasis Muscat.

“Oman is already part of this group (producers who agreed to cut output in last November) and I do not think Oman is going to be pulling out now,” he added.

Russia and Saudi Arabia, the largest of the 24 producers that agreed to cut output for six months starting in January, said on Monday that they favour a nine month extension of the reductions.

H E Aufi said if OPEC and non-members will agree to continue the agreement then Oman’s average oil production target would be at 970,000 barrels per day for 2017.

Kuwait on Tuesday also joined Saudi Arabia and Russia in supporting an extension of oil output cuts by OPEC and other global producers through the first quarter of 2018.

An extension of the cuts at already agreed upon volumes is needed to reach the goal of paring world inventories to their five year average, Kuwait’s Oil Minister Issam Almarzooq said on Tuesday in an emailed statement, Bloomberg reported.

“There are positive signals that have started to show, as April and May monthly reports are showing that global stockpiles have fallen significantly,” Almarzooq said.

Members of the Organization of Petroleum Exporting Countries agreed in November to cut 1.2mn barrels a day of
oil production. Several non-members, including Russia, agreed in December to contribute a combined 600,000 barrels a day of output reductions.

(With inputs from Bloomberg)