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Oil market doesn’t need more supplies: H E Rumhi

8 Nov 2021 H E Rumhi oil minister By OUR CORRESPONDENT

Muscat – Oman’s Minister of Energy and Minerals, H E Mohammed al Rumhi, has said that the sultanate does not see a need to increase oil supplies beyond what is agreed upon [under the OPEC+ agreement].

Speaking to CNN Arabic, H E Rumhi said, “We do not see the need to pump more oil than what was agreed upon. The market does not need [more supplies] either from reserves or from oil fields.”

The sultanate is a member of OPEC+ alliance, which includes all members of the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers such as Russia, Oman, Mexico, Azerbaijan and others.

On Thursday, OPEC+ agreed to continue modestly raising output despite pressure from the United States and other big consumer nations to open up the taps much more decisively amid soaring oil prices.

The 13 members of the OPEC and their ten allies reconfirmed a July decision to gradually step up production each month in a brief meeting via videoconference.

The OPEC+ group, led by Saudi Arabia and Russia, will add 400,000 barrels per day in December, they said.

The decision aimed ‘to ensure a stable and a balanced oil market, the efficient and secure supply to consumers,’ the group said in a statement.

The OPEC+ nations also pledged ‘to continue to adopt a proactive and transparent approach which has provided stability to oil markets.’

The next OPEC+ meeting is set for December 2.

OPEC+ slashed production steeply last year as the pandemic hit oil markets, but has eased output cuts this year as the global economy slowly recovers.

With prices for the benchmark WTI crude reaching to their highest level since 2014, US President Joe Biden recently appealed to OPEC on the sidelines of the G20 summit in Rome to pump more oil.

The White House was disappointed with the OPEC+ decision, warning that the global economic recovery is being imperiled by a mismatch between supply and demand of oil.

But Saudi Energy Minister Prince Abdulaziz bin Salman, who chairs the OPEC group, told reporters after the meeting on Thursday, “We still believe what we are doing is the right thing.”

Analysts had widely expected the group to stick by its July decision.

“Prices of over US$80 per barrel are, of course, another reason why OPEC+ will not be in any hurry to add supply to the market,” Caroline Bain of Capital Economics said.

(With inputs from AFP)

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