Muscat: Oman announced that it will cut its oil output by 200,000 barrels per day after Opec producers and allies agreed a record oil deal to slash global output by about 10 per cent. The fuel demand in the local market has fallen by 50 per cent as the Sultanate took measures to control the COVID-19 pandemic, the Sultanate’s oil minister told Oman Arabic, sister publication of the Observer.
Dr Mohammed bin Hamad Al Rumhi, Minister of oil and Gas added that the OPEC+ production cut agreement will likely rebalance the supply-demand in the international oil market.
The Sultanate’s production will be reduced to 682,000 barrels per day over the period May to June in addition to 180,000 barrel per day of crude oil and condensates bringing the total production to 830,000 bpd.
The minister said that the Ministry of Oil and Gas has directed the oil firms operating in the Sultanate to apply suitable mechanisms for production cut taking into consideration a number of factors including production cost.