Mohammed Hamad Al Rumhy, Oman's oil and gas minister, said on Monday that additional oil output cuts would not be needed unless the global market was oversuppliedABU DHABI (Pakistan Point News / Sputnik - 11th November, 2019) Mohammed Hamad Al Rumhy, Oman's oil and gas minister, said on Monday that additional oil output cuts would not be needed unless the global market was oversupplied.
"Personally, [from] what I know today, I think there is no need for another cut, we just need to continue with the agreement. But I don't have all the information. I may change my mind if the information indicates that there is an oversupply. We have to wait," Al Rumhy told reporters on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference 2019 (ADIPEC 2019).
The International Energy Agency predicted in its July report that there would be an oversupply of oil in 2020 due to the increase in oil production in states that are not members of the Organization of Petroleum Exporting Countries (OPEC), especially the United States.
During the OPEC meeting in July, the previously adopted supply cuts were extended until 2020. Nevertheless, fears of oversupply remain as the global economy has slowed due to trade wars between China and the United States. Even considering the instability in Venezuela and the unclear situation regarding Iran, the market might still be oversupplied, which poses a serious problem for OPEC countries.
ADIPEC 2019 opened its doors on Monday and will last through Thursday. The exhibition has become one of the most important platforms for the oil and gas industry to do business and exchange information. It attracts energy ministers and CEOs of global energy companies from across the world.