MUSCAT, Dec 20: Independent oil producer Oman on Thursday announced it would cut output by 40,000 barrels per day (bpd) to back Opec’s bid to force up crude prices.

Oman will at the start of January and until June reduce production by 40,000 bpd to support prices on the international oil market, Oil minister Mohammad bin Hamad al-Romhi told the official ONA news agency.

The sultanate had at first said it would sacrifice just 25,000 bpd towards the 500,000 bpd target set for non-cartel producers by Opec which wants to reduce its own output by 1.5 million bpd.

Romhi said that following fresh ocnsoutlations with Opec and non-PEC members, the state Petroleum Development Oman comany would cut production from 850,000 bpd to 815,000 bpd and that the other 5,000 bpd would be found among other companies operating in the country.

Ministers of the Organisation of Petroleum Exporting Countries agreed in November to cut production by 1.5 million bpd from January 1, but only on condition that non-Opec major producers like Russia, Norway and Mexico cut by half a million bpd.

After Norway made a firm pledge Monday to reduce output by 150,000 bpd if other producers also cut, Opec had assurances of an overall reduction of 447,500 bpd from non-Opec producers, including Russia (150,000 bpd), Mexico (100,000) and Angola (22,500 bpd).

The new figure for Oman, which is currently producing 900,000 bpd, would push that to 462,500 bpd, leaving a target shortfall of 37,500 bpd.

These reductions will restore balance between supply and demand in the interest of producers and consumers, the oil minister said.

In London, oil prices held firm Thursday morning on the news from Oman.

A barrel of Brent North Sea crude for February delivery was going for $19.55 a barrel from 19.47 at the close on Wednesday. In New York overnight, the February light sweet crude contract rose 20 cents on Wednesday to $19.80 a barrel.

Opec is to meet in Cairo next Friday to assess the situation.

LONDON: Oil prices held firm on Thursday morning amid market talk of another production cut promise by a non-Opec producer, this time Oman.

A barrel of Brent North Sea crude for February delivery was going for $19.55 a barrel from 19.47 at the close on Wednesday. In New York overnight, the February light sweet crude contract rose 20 cents on Wednesday to $19.80 a barrel.

Such a decision by Oman would increase the volume of cutbacks that countries outside of the Organization of Petroleum Exporting Countries (Opec) are preparing.

Opec wants its rivals to slash output by 500,000 bpd, saying that only then will it cut its own production by 1.5 million bpd. Non-Opec countries have fallen short of the magic figure, but an increase by Oman would take them ever closer to 462,500 bpd.

Opec is to meet in Cairo next Friday to assess the situation.—AFP