Oman expects further non-OPEC output cuts

February 16, 2017 | 10:14

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KUWAIT CITY: Non-OPEC oil producers are expected to cut output further this month under a landmark deal with the cartel aimed at curbing a global supply glut, Oman's oil minister said on Wednesday (Feb 15).

Oman expects further non-OPEC output cuts

Omani Oil and Gas Minister Mohamed al-Rumhi says non-OPEC producers had delivered on more than half of their pledged cuts and he expected them to reduce output further in the coming weeks. (NEZAR BALOUT/AFP)

"We expect the (compliance) figures to be encouraging in February," Mohamed al-Rumhi told reporters at an oil conference in Kuwait City.

OPEC and non-OPEC countries, including Russia, agreed in November to reduce output by about 1.8 million barrels per day following a sharp drop in oil prices.

Oman is one of 11 non-OPEC oil producers which agreed to slash their total crude production by about 558,000 barrels per day.

Rumhi said non-OPEC producers had delivered on more than half of their pledged cuts and he expected them to reduce output further in the coming weeks.

His comments come after Kuwait, head of a committee tasked with overseeing implementation of the deal, on Monday said OPEC had made more than 90 percent of the cuts it agreed.

Kuwaiti oil minister Essam al-Marzouk said non-OPEC states were yet to fully comply as they had export commitments signed prior to the deal.

Russia, the world's top crude producer, agreed to cut output by 300,000 bpd.

Rumhi said he expects Russia to edge closer to implementing pledged cuts in February and March.

"From the start, Russia said they will take some time to reach the full compliance," said the minister.

Rumhi said he hoped the deal would be extended past its June expiry date.

Global oil prices fell from more than US$100 a barrel in June 2014 to near 13-year lows of less than US$30 in early 2016, hitting the public finances of many oil-producing nations.

Prices have since bounced back above US$50 after output cuts that took effect at the start of 2017.

The five-member committee monitoring the deal is set to meet in Kuwait next month to reassess compliance with the pledged cuts.

AFP

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