Oman agrees cut output to support OPEC<\/p>\n
Agence France-Presse, Muscat<\/p>\n
Oman, an independent oil producer, on Thursday announced it
\nwould cut production by 40,000 barrels per day (bpd) to back
\nOPEC's bid to force up crude prices.<\/p>\n
"Oman will at the start of January and until June reduce
\nproduction by 40,000 bpd to support prices on the international
\noil market," Oil Minister Mohammad bin Hamad al-Romhi told the
\nofficial ONA news agency.<\/p>\n
The sultanate had at first said it would sacrifice just 25,000
\nbpd towards the 500,000 bpd target set for non-cartel producers
\nby OPEC which wants to reduce its own output by 1.5 million bpd.<\/p>\n
Ministers of the Organization of Petroleum Exporting Countries
\nagreed in November to cut production by 1.5 million bpd from
\nJan.1, but only on condition that non-OPEC major producers like
\nRussia, Norway and Mexico cut by half a million bpd.<\/p>\n
After Norway made a firm pledge Monday to reduce output by
\n150,000 bpd if other producers also cut, OPEC had assurances of
\nan overall reduction of 447,500 bpd from non-OPEC producers,
\nincluding Russia (150,000 bpd), Mexico (100,000) and Angola
\n(22,500 bpd).<\/p>\n
The new figure for Oman, which is currently producing 900,000
\nbpd, would push that to 462,500 bpd, leaving a target shortfall
\nof 37,500 bpd.<\/p>\n
A barrel of Brent North Sea crude for February delivery was
\ngoing for US$19.55 a barrel from 19.47 at the close on Wednesday.
\nIn New York overnight, the February light sweet crude contract
\nrose 20 cents on Wednesday to $19.80 a barrel.<\/p>\n
"Prices are remaining firm because it would appear that Oman
\nis preparing to reduce its production by 40,000 barrels a day"
\ninstead of the 25,000 barrels expected by the market, said
\nPrudential Bache dealer Luca Bertali.<\/p>",
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