Oman to Announce Oil Output Cuts when vienna Meet
Omani authorities say the country can cooperate in OPEC’s planned output cut, however is holding out on a specific cut commitment till the cartel’s 10 december meeting in vienna, news agencies report.
OPEC has agreed to cut a total of 1.2 million barrels per day of crude oil production, and currently non-OPEC members are being brought into the fold, with the terms of individual member participation to be discussed in vienna next week, with cuts to be implemented at the start of the new year.
“We can discuss the terms and conditions of a production freeze or cut with different countries. oman can co-operate to achieve the planned target. Our percentage decrease in production can rely on the meeting and the way a lot of we are asked to cut,” Times of oman quoted Oman’s oil and gas minister, Dr mohammed Al Rumhy, as saying.
On Sunday, Oman, the largest non-OPEC producer within the middle east, confirmed that it'd attend the 10 december meeting. opec is holding out for non-cartel countries to slash 600,000 bpd in crude output, of that Russia has agreed to cut 300,000 bpd on its own.
How much oman is likely to cut is pure speculation at this point. whereas the oil and gas minister noted that different non-OPEC producers were throwing regarding suggestions of a 3-4-percent reduction in output, oman is also considering bigger cuts. within the past, oman has indicated that it would be willing to cut between 5 % and 10 % of its production so as to help rebalance the market, Reuters reported.
Oman is manufacturing regarding 1 million bpd, and therefore the Minister Rumhy is eying $50-$60/barrel oil prices next year, assuming the opec cuts go forward.
OPEC hit record output in november of 34.19 million bpd, up from 33.82 million bpd the previous month, according to a Reuters survey. Likewise, Russia averaged 11.21 million bpd in november, a 30-year record.