Oman censures OPEC decision on oil output

Oman censures OPEC decision on oil output

HomeProgramsIran Wed Jan 21, 2015 4:38PM

Oman has joined Iran and Venezuela in reproaching the Organization of the Petroleum Exporting Countries for its recent decision to maintain the 12-nation oil cartel’s output cap.

Oman’s Oil Minister Mohammed al-Rumhy said at a conference in Kuwait City that his country is having a “really difficult time” because of low oil prices. The biggest Middle Eastern oil producer that is not a member of OPEC has already had its credit rating slashed by Standard & Poor’s from stable to negative over the sharp oil drop.

Al-Rumhy also told the conference: “I really fail to understand how market share became more important than revenue. We have created volatility, and volatility is one of those words that is bad for business.”
The 2015 budget of Oman, where oil and natural gas account for 79% of government revenue, is based on an average crude price of $85 a barrel, Finance Minister Darwish Al Balushi said in November. Oman’s oil production fell in November to 926,000 barrels a day, the lowest since May 2013, Bloomberg reported on Wednesday.

The Omani official’s comments follow remarks by Venezuela’s Foreign Minister Rafael Ramirez who recently said: “Our position on OPEC is that they defend the fair price of our oil. We must make an effort to reduce overproduction.”

Venezuela loses an estimated $700 million a year for each $1 per barrel drop in oil prices, according to state-run oil company Petroleos de Venezuela SA.

Iran’s Oil Minister Bijan Namdar Zanganeh also had similar criticism of the oil cartel, saying in November that OPEC’s decision to maintain its production ceiling at 30 million barrels a day was “not in line with what we wanted.”

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