H E Rumhi expresses satisfaction with $65-$75 oil price range

March 31, 2019

Oman’s Minister of Oil and Gas H E Dr Mohammed bin Hamad al Rumhi has expressed his satisfaction with the current levels of oil prices, ranging between US$65 and US$75 per barrel.

H E Rumhi expects oil prices to continue in the range of US$65-US$75 per barrel until the end of this year, according to his statement to Oman News Agency on Saturday.

H E Rumhi said Oman is still committed to the agreement of the Joint Ministerial Monitoring Committee (JMMC), which monitors compliance with oil production and supply by members of the OPEC+ alliance, till the end of this year.

The JMMC of OPEC and non-OPEC participating countries was convened in Baku, Azerbaijan, for its 13th meeting on March 18. OPEC+ producers had renewed their commitment to market stabilisation at the meeting.

Speaking about Oman’s exit from the membership of JMMC to monitor the agreement between OPEC and non-OPEC countries, H E Rumhi said Oman supported the idea of rotation of the monitoring committee membership that was agreed by OPEC+ alliance. Oman has completed two years as a member of the committee, therefore it was agreed by OPEC secretariat that another country should join the committee, he added.

Oil futures rose 1.4 per cent in New York on Friday as Russian Energy Minister Alexander Novak said the country would deepen the output cuts it imposed along with OPEC this year to resurrect the market. Brent crude for May settlement on Friday climbed 57 cents to US$68.39 a barrel on the London-based ICE Futures Europe exchange.

After plummeting about 40 percent late last year, oil prices have rebounded 32 per cent to start 2019. Russia, Saudi Arabia and other top exporters have squeezed production due to a growing oversupply, while sanctions against Venezuela and investor pressure on US shale drillers have added to signs of a tighter market, according to a Bloomberg report.