On Wednesday 30 November 2016, the Organisation of the Petroleum
Exporting Countries (OPEC) reached an agreement that committed its
members to introduce oil production limits for the first time in
eight years. It is hoped that that the deal will aid recovery in
the sector and help to address the turmoil that has engulfed the
oil and gas industry for more than two years. Initial signs appear
to be positive – oil prices appear to have stabilised (at
least for the moment), after an initial surge following
announcement of the deal, and OPEC's members are taking steps
to enforce the production cuts, which appear to be holding. Oman
itself has agreed to cut production by 45,000 bpd and the Ministry
of Oil and Gas has set daily production quotas for oil producing
companies. The Sultanate has also been appointed to a monitoring
committee established by OPEC in order to oversee implementation of
the cuts in production.
