Wednesday , September 28 2022

The Minister of Oman could be put into production


The Organization of Petroleum Exporting Countries (OPEC) agrees with a reduction in production when it will meet next month in Vienna, Omani oil minister said on Sunday after Saudi Arabia confirmed it would cut its own oil source in the country. next month, and Russia signaled that it could do the same.

"There is a consensus that there will be an excessive supply in 2019," Omani Mohammed bin Hamad al-Rumhy, the oil minister, told the Wall Street Journal following the Abu Dhabi Joint Monitoring Committee meeting. Although Oman is not a member of OPEC, the country is taking part in production decisions. The conclusion of the meeting is that the participating countries reached 104% of the compliance level in October.

The news comes after Saudi Arabia's oil minister, Khalid al-Falih, said the country is ready to cut production, while Russia has left this open possibility.

Saudi Arabia, Russia – which are the world's largest oil exporters – and several other producers gathered in Abu Dhabi to examine whether reductions of 1 million barrels per day in production will be needed next year. Speaking before the meeting, al-Falih said the reduction in Saudi production is imminent. "Estimates for December are 500,000 barrels a day less than in November. There will be a gradual reduction," he said.

Russia, OPEC's largest ally outside the group, was expected to oppose any further cuts as its state-owned oil companies have invested heavily in an increase in output. But Oil Minister Alexander Novak did not exclude a cut next month. Speaking ahead of the meeting, Novak said he is "openly in theory" to cut crude production if the coalition reached a consensus and would join any decision he would make.

But Falih said it is too early to say what will be decided at the December meeting scheduled for Vienna. "We will not prevent a reduction, but only if necessary," he said, adding that the group must be certain that "the surplus supply will continue in 2019". The Russian minister said that OPEC is studying a scenario where this excessive amount could reach 1.2 million barrels per day. Friday Friday (09), oil

Falling for the tenth day in a row, oil prices closed on Friday (09), WTI in the longest loss of 1984 and the lowest level in nine months, and Brent the cheapest in seven months. WTI Oil for December dropped 0.79% to $ 60.19 per barrel at the New York Mercantile Exchange (Nymex), while Brent for January fell 0.66% to 70.18 barrel on exchange intercontinental (ICE). In the week, the accumulated contracts recorded losses of 4.67% and 3.63%. Source: Dow Jones Newswires.

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