Oman doe not support the increase in oil output by countries producing the raw material in light of the drop in prices, Omani Oil Minister Mohammed Al Rumhi told Al-Watan newspaper on Thursday
DOHA (Pakistan Point News / Sputnik - 02nd April, 2020) Oman doe not support the increase in oil output by countries producing the raw material in light of the drop in prices, Omani Oil Minister Mohammed Al Rumhi told Al-Watan newspaper on Thursday.
"The production of the sultanate did not affect the drop in prices, it reached 100 percent, but the sultanate does not want to fill the market with oil. Despite the limitations of its oil output, which reached 970,000 barrels per day, we do not support the increase in production by other countries in this sensitive period, as this does not serve the interests of states or oil production in the world," Al Rumhi said.
The minister noted that since the beginning of the fall in oil prices, the country had attempted to convince OPEC member-states and other oil producers of the need to contain the price increase by reaching an agreement that would satisfy all parties. According to him, Oman still has hope that prices will return to a level acceptable for both producers and oil consumers.
Oil prices have significantly dropped since early March due to the expected demand slump after the failure to reach the OPEC+ oil output cut deal and amid the coronavirus outbreak. After OPEC+ member-states did not manage to agree on further output cuts, market analysts began to predict a "price war" between the main exporters. As a result, after the OPEC+ agreement on reducing oil production expired on Wednesday, Saudi Arabia began increasing oil output despite a sharp drop in demand due to the COVID-19 pandemic.
