Oil companies notified of 45,000 bpd output cut

MUSCAT: The Ministry of Oil and Gas has informed oil companies on the output cut of 45,000 barrels per day (bpd). The ministry said in a statement it has also informed exploration firms about the cut, which is in line with the agreement reached by Opec and non-Opec producers in Vienna to bring down supplies by 558,000 bpd. The group of states, which includes Russia, on Saturday agreed to cut supplies for the first time in 15 years. Opec had announced last month that it would be slashing its own production to ease an oversaturated global market. Meanwhile, Dubai Mercantile Exchange (DME) said that Oman oil price (February delivery) reached $53.44. The DME statement said that the price of Oman oil declined $1.36 from the price of Monday, which was $54.80.  The average price of Oman oil (December delivery 2016) has stabilised at $49.18, thus $5.78 per barrel higher than November delivery.