Oman has agreed to slash crude output by 200,000 barrels per day (bpd) during July in line with an accord reached by global oil producers on Saturday night to extend record production cuts for another month.
Non-Opec member, as a partner in the so-called Opec+ grouping of leading producers, had participated in Saturday’s video conference aimed at shrinking a supply glut that has eroded international oil prices amid the global coronavirus pandemic.
Representing Oman at the virtual meeting were Dr Mohammed bin Hamed al Rumhy, Minister of Oil and Gas, and Ali Abdullah al Riyami (pictured), Director General of Oil & Gas Marketing at the Ministry.
In comments to the Observer, Al Riyami welcomed the earnestness with which Opec and non-Opec producers had deliberated on the meeting’s central objective of propping up international oil prices through a further extension of the production cut.
“It was an excellent meeting! There was consensus between Opec and non-Opec producers on the extension proposal. Additionally, there was appreciation that the deal agreed in April was achieving its intended goal. The participating countries demonstrated a good understanding about the importance of the deal in stabilising the market.”
As part of its commitment to the historic pact reached by the Opec+ alliance in April, the Sultanate had slashed output by 200,000 bpd for May and June 2020. Following the new accord reached on Saturday, it has now pledged to cut its July production by 200,000 bpd as well.
On top of this commitment, the Sultanate is also considering a further reduction of between 10,000 – 15,000 bpd for the months of June and July 2020 to help “give extra support to the market”, said Al Riyami.
From August to December 2020, the Sultanate’s share of the production cut will reduce to 161,000 bpd, further dropping to 121,000 bpd for the remainder of the accord from January 2021 to April 2022.
Significantly, the Opec+ alliance also agreed to task the Joint Ministerial Monitoring Committee (JMMC) to meet every month to check whether producers are adhering to their production cuts.
The Sultanate has been a member of the JMMC, as well as the Joint Technical Committee, but gave up its positions on both panels last year to make way for other countries to play their part as well, said Al Riyami.