Oman Begins Oil
Output Cut Under OPEC Deal
January 04, 2017
Oman will cut crude oil production as OPEC
deal with independent producers comes into
effect. Accounting for 4.5 per cent of its 1
million barrel per day production, Oman will
slash 45,000 barrels per day to honour the
agreement with OPEC.
n 2016, oil made the biggest annual gain
since 2009, which was following the global
financial crisis that drove prices down on
concerns about demand.
The price per barrel had fallen to below the
$30 level in January last year, but has
since registered a 100 per cent increase,
hovering around $55 per barrel at the close
of 2016. Oman crude closed trading in 2016
at $54.24 per barrel. The price rally has
brought optimistic views about the Omani
economy and job market. In an interview with
Times of Oman, oil and gas experts said that
oil at $55 could help save jobs and avoid
laying off workers.