Mubasher: Omani Oil Minister Mohammed bin Hamad al-Rumhy on Monday said that the Organization of the Petroleum Exporting Countries (OPEC) and other producers could probably roll over its production cuts, according to Reuters.
However, OPEC members and their partners, including Oman and Russia, an alliance known as OPEC+, are unlikely to deepen their supply restraints, according to al-Rumhy.
“Extension probably, [deeper] cuts I think unlikely unless things happen in the next couple of weeks,” Oman’s energy minister said at an energy conference in Abu Dhabi.
In the same vein, the UAE said it was not worried about long-term growth in oil demand.
OPEC+ producers agreed late last year to withhold 1.2 million barrels per day (bpd) from last January to March next year in a bid to shore up prices.
The allied producers are due to meet next December to review production policy.
Crude demand was improving on thawing trade tensions, while Oman is content with the current oil prices.
“All indications show things are getting better, the fear of recession, the signs of agreement between the US and China are positive,” al-Rumhy said.
The geopolitical situation in the Middle East have raised worries over supplies among oil importers after a series of tensions, the latest of which was an attack on Saudi Arabian oil-processing facilities in mid-September.
Both Saudi Arabia and the US accused Iran, another OPEC member, of perpetuating the attacks.
The oil minister of Oman, which maintains relations with Iran, said that engaging with Tehran is less costly than piling up crude stockpiles for emergencies.
“Sitting with Iran is something we have been campaigning for a long time and hope it will happen,” Rumhy said.
By 12:48 pm GMT, US Nymex crude futures dropped by 1.08% to $56.62 per barrel (pb), while global benchmark Brent futures fell by 0.85% to $61.98 pb.