January 21, 2018 / 7:17 AM / 10 months ago

Oman oil minister - global supply deal targets still-high inventories, not prices

A flag with the Organization of the Petroleum Exporting Countries (OPEC) logo is seen during a meeting of OPEC and non-OPEC producing countries in Vienna, Austria September 22, 2017. REUTERS/Leonhard Foeger

MUSCAT (Reuters) - The deal on supply cuts among global oil producers aims to address excess oil inventories, which are still high, rather than price levels, Oman’s oil minister Mohammed bin Hamad al-Rumhi said on Sunday.

He was speaking to reporters on the sidelines of a meeting of the joint ministerial committee which oversees implementation of the global deal. Sunday’s meeting will not discuss an exit strategy from the supply cuts, he said.

The current oil price level is healthy for investment in the oil industry and for the global economy, Rumhi added, saying there was concern about a lack of investment in the industry. Brent LCOc1 crude is just below $70 a barrel.

Rumhi also said that global oil producers were due to discuss in November this year whether to renew their cooperation agreement on supply cuts or enter a new type of agreement. Oman is in favour of reaching a new type of deal, he said.

Reporting by Rania El Gamal and Maha El Dahan; Writing by Andrew Torchia

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