PHOTO
12 December 2016
“We see a ray of hope not only for the workers in the oil and gas sector but also for those who are working in other sectors. If prices better more, firing can come to an end, existing projects can continue, new projects will come and moreover, workers can get real jobs.”
This optimistic note has been struck by Saud Salmi, the chairman of the oil and gas trade unions, reacting to the recent increase in the price of oil.
His comments were echoed by an oil company boss who told Times of Oman that $55 per barrel will help them to protect workers and carry on projects.
Oman oil was traded at $54.80 at Dubai Mercantile Exchange on Monday.
Following the Organisation of the Petroleum Exporting Countries (OPEC) deal with non-OPEC countries on Saturday in Vienna to cut the production, the oil price is showing recovery globally.
From January 1 for six months, non-OPEC countries have decided to cut oil production altogether by 558,000 barrel per day.
Oman has agreed to cut production by 45,000 barrels per day.
Mohammed Khalid, country manager of Descon Engineering, an oil firm, said that the current trend gives hope and if the oil prices reaches $54 per barrel, then workers can be protected.
“Analysts and we see that if oil price touched $54 or $55, then workers can be protected. Then we can avoid firing. We hope that it will reach that value soon,” the country manager added.
Mohammed Farji, another trade unionist, said that low price conditions has taught us a lesson and we should not fail to learn it.
“The low oil prices taught us a good lesson that we should not simply depend on oil prices to run the country. We should diversify. Now, we have started it. It’s a little late. But happy to say that it’s happening,” the trade unionist said while adding that oil price recovering is a big relief for them.
“Many workers were sent back after training even though they were offered jobs. Hope so such situations will come to an end,” the trade unionist added.
A barrel of Omani crude was sold for an average of $36.40 in January to July, down by almost 40 percent from last year’s seven-month average of $59.90.
As a consequence, Oman’s oil revenues slumped by 47.7 per cent to OMR1.489 billion, from OMR2.847 billion leading to job loss in big numbers in sector.
Dr Anchan CK, an investment advisor in Oman, said that the market is benefiting from the Opec, non-Opec deal.
“The market is showing positive signs. It is benefiting from the deal between OPEC and non-OPEC countries. In winter prices go up due to consumption rise, so, we can expect prices bettering in the coming days too. Now, it may range between $50 and $60 in the 2017,” the advisor added.
In the aftermath of a severe fall in global oil revenue, Oman’s government posted a budget deficit of OMR4.32 billion ($11.4 billion) in the first eight months of 2016, according to latest official figures.
“We see a ray of hope not only for the workers in the oil and gas sector but also for those who are working in other sectors. If prices better more, firing can come to an end, existing projects can continue, new projects will come and moreover, workers can get real jobs.”
This optimistic note has been struck by Saud Salmi, the chairman of the oil and gas trade unions, reacting to the recent increase in the price of oil.
His comments were echoed by an oil company boss who told Times of Oman that $55 per barrel will help them to protect workers and carry on projects.
Oman oil was traded at $54.80 at Dubai Mercantile Exchange on Monday.
Following the Organisation of the Petroleum Exporting Countries (OPEC) deal with non-OPEC countries on Saturday in Vienna to cut the production, the oil price is showing recovery globally.
From January 1 for six months, non-OPEC countries have decided to cut oil production altogether by 558,000 barrel per day.
Oman has agreed to cut production by 45,000 barrels per day.
Mohammed Khalid, country manager of Descon Engineering, an oil firm, said that the current trend gives hope and if the oil prices reaches $54 per barrel, then workers can be protected.
“Analysts and we see that if oil price touched $54 or $55, then workers can be protected. Then we can avoid firing. We hope that it will reach that value soon,” the country manager added.
Mohammed Farji, another trade unionist, said that low price conditions has taught us a lesson and we should not fail to learn it.
“The low oil prices taught us a good lesson that we should not simply depend on oil prices to run the country. We should diversify. Now, we have started it. It’s a little late. But happy to say that it’s happening,” the trade unionist said while adding that oil price recovering is a big relief for them.
“Many workers were sent back after training even though they were offered jobs. Hope so such situations will come to an end,” the trade unionist added.
A barrel of Omani crude was sold for an average of $36.40 in January to July, down by almost 40 percent from last year’s seven-month average of $59.90.
As a consequence, Oman’s oil revenues slumped by 47.7 per cent to OMR1.489 billion, from OMR2.847 billion leading to job loss in big numbers in sector.
Dr Anchan CK, an investment advisor in Oman, said that the market is benefiting from the Opec, non-Opec deal.
“The market is showing positive signs. It is benefiting from the deal between OPEC and non-OPEC countries. In winter prices go up due to consumption rise, so, we can expect prices bettering in the coming days too. Now, it may range between $50 and $60 in the 2017,” the advisor added.
In the aftermath of a severe fall in global oil revenue, Oman’s government posted a budget deficit of OMR4.32 billion ($11.4 billion) in the first eight months of 2016, according to latest official figures.
© Times of Oman 2016
