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.