By Abulwahab Al-Ghayed
VIENNA, Jan 23 (KUNA) -- Omani Oil Minister Mohammad Al-Rumhi Monday expressed relief for an agreement concluded by the ministerial monitoring committee, which set up a monthly mechanism to monitor oil output cuts.
The mechanism will be monitoring commitment of OPEC and non-OPEC producers to an agreement struck last month to reduce oil output by 1.8 million barrels per day (bpd) as of January 1.
Oman has always supported the production cuts because "it is the only solution" that would restore balance to oil market, Al-Rumhi told KUNA after taking part in the ministerial monitoring committee meeting.
Oman, a major non-OPEC oil producer in the Middle East, "affirms its commitment" to last month's agreement, he said.
Al-Rumhi said oil prices' increase by 20 percent since the agreement entered force "is a clear evidence the decision of oil producers from OPEC and outside of OPEC is correct." Oil prices reached the USD 50 margin, he noted, and they could improve if the 24 countries parties of the agreement continued their abidance with the accord.
Al-Rumhi played down impacts of any decision by the US to boost shale oil production. "This is because of high cost of shale oil production coupled with projections of higher crude oil demands," he added.
Kuwait's oil minister Essam Al-Marzouq, who chairs the ministerial committee, thanked Oman and Russia for their "active and effective" role within the committee.
OPEC Secretary General Mohammad Barkindo, in a statement to KUNA, thanked oil producers for committing to the agreement to restore stability in oil markets. (end) amg.bs