Measures that Shore Up Crude Prices to be Supported by Oman

According to a top official of the Oman Ministry of Oil & Gas, any measure globally coordinated which would help potentially drive up and sustain international oil prices will be backed by the Sultanate. A longer-term uptrend is not being signalled witnessed in recent days by the slight uptick in crude prices is not a great positive sign in his words. He opine that the producers should be on track always to back the efforts lead by Opec to shore up prices.

Last November Non-Opec Oman came under a deal where 24 producing countries have agreed to cut a total of 1.8 million barrels per day (bpd) as part of an international coalition. Till the end of March 2018  the production has been cut which was initially envisaged for a period of six months and extended as of now.  At Opec’s next meeting in Vienna on November 30, 2017, a final decision on the issue is likely to take place.

Finally, the official pointed out that the current initiative has to be  wound down at a time when it turns unfavourable but the challenge would be on the pace at which it could be done and how would the members dismantle the initiative.