Oman’s Minister of Energy expects Oil price average over $50 for 2021

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هذه الصفحة متوفرة بهذه اللغة: العربية

5 January 2020

MUSCAT (WAF): Dr Mohammed bin Hamad al-Rumhy, Omani Minister of Energy and Minerals expects oil to maintain an average price above $50 a barrel during the current year, the official told WAF News.

Oman is a member of the OPEC Plus group negotiating the oil output of 20+ countries in order to maintain healthy oil prices since 2016.

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The non-OPEC country is taking part in the on-going discussion for the second day of the OPEC Plus Ministerial meeting which started on Monday. The members have failed to reach consensus yesterday on keeping the current oil output levels for another month (February) or increasing the production by 500,000 barrel per day.

Oman supports the majority vote favouring the current levels, led by Saudi Arabia, given another shutdown in several economies due to the pandemic, and the slow return of air traffic. Russia leads the opposing call for an increase in production in February 2021.

Oman’s budget for 2021 assumes an average oil price of $45 per barrel. The oil-dependent country expects a deficit of RO2.2 billion, and net oil revenues estimated at RO3.5 billion of the budgeted total revenues of RO8.6 billion. The government expects an average oil production, taking into account the OPEC Plus agreement’s effects, of 960,000 barrels per day. Oman is relying on boosting its condensate output, which is not constrained by the agreement.

In December, the OPEC Plus agreed to raise oil production starting from January by 500,000 bpd. The volume of production will be reviewed every month, according to market conditions, to add two million bpd during the current year. Based on the agreement, the Sultanate increased its oil production from about 722,000 of crude in December 2020 to 732 thousand barrels in January.