Abu Dhabi: Oman said it was ready to cut its oil production by five to 10 per cent and “do anything” needed in order to stabilise the market, with a top spokesman from the Gulf Cooperation Council (GCC) country saying that other oil producers should do the same.
Mohammad Al Rumhi, Oman’s Minister of Oil and Gas, said Oman was willing to cut “whatever was needed” in its oil production to help the market.
He added that he has spoken with other GCC ministers about prospects of cutting Opec’s (Organisation of Petroleum Exporting Countries) production, but that everyone had “different philosophies”.
Al Rumhi has long been a critic of Opec’s policy to raise supply in favour of maintaining market share — a policy that has resulted in oil prices falling to their current lows below $30 a barrel.
Oman currently produces around one million barrels per day — a figure that is not expected to rise further this year, the minister said.
“I have said on the record that Oman is ready to do anything that will stabilise and improve the oil market,” he said.
Speaking to reporters on Monday, Al Rumhi added that the new wave of oil supply coming into the market after sanctions were lifted off Iran is not expected to have a significant impact on oil prices.
“The [oil] market is not stable. We’re already being flooded so what’s another wave? We’re sinking. We are suffering from a tsunami and you’re worried about a little wave coming on top of it?! I’m not. Everybody is already pumping,” he said.
Asked about the US lifting sanctions off Iran, Al Rumhi said he was a supporter “of anything which brings peace.”
Al Rumhi was speaking on the sidelines of the World Future Energy Summit, which kicked off on Monday in Abu Dhabi with the aim of boosting the renewable energy sector.
