Mohammed Al-Ramahi, Minister of Oil in the Sultanate of Oman, said on Saturday that his country supports the recommendations of an OPEC technical committee to make a short and larger reduction in oil production until the end of June.
Al-Ramahi added, “The Sultanate of Oman supports the recommendations of the OPEC Technical Committee in order to reach a possible agreement for a short and larger reduction in production as OPEC immediately cuts oil production until the end of the second quarter while we continue to monitor the consequences of the Corona virus on the growth of oil demand.”
On Thursday, a technical committee advising OPEC and its Russian-led allies, a grouping known as OPEC, proposed a temporary cut of 600,000 bpd, three sources told Reuters.
OPEC producers are currently looking into whether they meet early for their scheduled meeting in Vienna on March 5th and 6th.
And China imposed a health stone, which may be the largest in history in the city of Wuhan, the epicenter of the virus, which includes eleven million people, which led to the suspension of many global factories in the city.
According to the Business Insider website, the city contains factories belonging to the companies “PepsiCo” specialized in gas products, the German giant Siemens, the French car company Peugeot and the company “Xiaomi” for Chinese mobile phones in addition to other international companies.
The slowdown in production has already led to a decline in global oil demand, and economist Dergham Muhammad Ali says that the surplus in the world market for oil has reached one million barrels.
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