Oman’s Ministry of Energy and Minerals has announced its intention to extend its voluntary reduction of 40,000 barrels of oil per day until December 2024, according to media reports.
This extension is being implemented as a precautionary measure, the state-owned Oman Observer said in a report.
Oman, although not a member of OPEC, is one of the largest crude oil exporter in the region. The country has consistently supported global production cuts aimed at stabilizing energy prices.
The Ministry stated that this decision was made in collaboration with the countries taking part in the OPEC+ agreement, which includes both OPEC members and non-OPEC oil-producing nations.
OPEC has characterised this action as a mean to achieve and maintain stability in the oil market, while providing long-term guidance and following a successful strategy of being cautious, proactive, and preemptive.
Analysts view the extension of these voluntary cuts positively, as they believe it will contribute to the stabilization of the global oil market and help maintain oil prices at a reasonable level. The global oil market has been facing various challenges lately, including increased demand from emerging economies and geopolitical tensions worldwide.
In April, OPEC+ unexpectedly announced reductions in oil production, amounting to approximately 1.16 million barrels per day.