Oman has announced that it is to dramatically reduce the Sultanate’s oil production by 200,000 barrels of oil per day (bbl/d) in July to comply with the record oil cuts that were extended for another month, according to the Oman Daily Observer.
Oman’s oil and gas minister, Ali Abdullah al Riyami, has affirmed that the Sultanate is considering a further voluntary reduction of between 10,000 to 15,000 bbl/d for the months of June and July to help “give extra support to the market”.
From August to December, the Sultanate’s share of the production cut will be reduced to 161,000 bbl/d, further dropping to 121,000 bbl/d for the remainder of the accord from January 2021 to April 2022.
It was initially agreed that global production cuts of 9.7 mmbbl/d would only last in May and June and that from the period of July to December the cuts would ease to 7.7 mmbbl/d. However, OPEC+ have now decided to prolong these production cuts in July to further aid global oil price recovery.