Non-OPEC producer Oman has notified its term customers in Asia that it will reduce supplies by 15% from June to meet local demand and as part of its commitment to cut output under a producers’ agreement, Reuters reported, citing the Ministry of Oil and Gas.
According to Times of Oman, the country’s rising demand comes from domestic surge of industries related to petroleum products, including the multi-billion dollar Sohar Refinery improvement project that is ready to boost output by up to 70%.
Furthermore, under the OPEC deal in Vienna in 2016, Oman promised to cut 45,000b/d of crude oil to control the supply glut that has hit global markets since 2015. Crude oil output grew to 1mb/d for the first time in history in 2016 before the Sultanate agreed to production cuts.
Oman exports around 90% of its crude oil to China, according to official data presented by the Ministry of Oil and Gas.