Oman is prepared to cut production if Opec and non-Opec members take the initiative, the country’s oil minister said yesterday.
Opec, which pumps more than a third of the world’s oil, has refused to cut production to protect its market share rather than prop up prices. Brent was trading under $28 per barrel early yesterday, before firming up at $29.28.
Opec failed at its last meeting in December to decide on a production ceiling, leaving members to pump at will.
“Oman is ready to do anything that would stabilise and improve the market,” Mohammed Al Rumhy said at a conference in Abu Dhabi. “At least if Opec and few non-Opec [countries] chop 10 per cent [of production], I think the problem is solved.”
Currently Oman produces about 1 million barrels per day. Oil prices have fallen significantly even as Opec member Iran is expected to significantly boost production following the lifting of sanctions imposed more than a decade ago.
Iran produced 2.88 million bpd in December, according to secondary sources quoted in Opec’s January oil market report.
Opec produced 32.18 million bpd in December, a decrease of 211,000 bpd from November.
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