"It is agreed that there will be too much oil on the market in 2019," said Oman's oil minister Muhammad bin Hamad al-Rumhy to the Wall Street Journal following a ministerial meeting of the OPEC commission to oversee the oil market. The meeting was held in Abu Dhabi on Sunday.
Oman is not a member of the Organization for Oil Exporting Countries (OPEC), but participates in the organization's decision to regulate production.
The cuts that are planned make the 15 OPEC countries, which are mainly oil countries in the Middle East, prevent dramatic fall in prices.
It was Saudi Arabia and some other oil exporting countries that met in Abu Dhabi this weekend. One was discussing a reduction in oil production by 1 million barrels. The decision is taken at the OPEC Ministerial Conference in Vienna on 6 December. Saudi Arabia must be ready to take half of this average 500,000 barrels.
Russia's oil minister Alexander Novak told CNBC on Sunday that no quick decisions should be made.
"The market is volatile and quick decisions about production cuts can make the effects bigger," he said.
He does not exclude that Russia, which is not a member of OPEC, could participate in production cuts in December.
Saudi Arabia's oil minister Khalid al-Falih said it is too early to say what will be the end of the ministerial meeting in December, but that OPEC will not be shy from making the cut that is necessary.
At geopolitical level, not least, US sanctions against Iran create challenges in the oil market. In addition, a significant increase in oil production in the United States.
Dramatic fall for North Sea oil
A bar of North Sea oil was traded for around $ 85 on spot market in mid-October, and Friday was priced under $ 70, but ended at $ 70.94. That means 20 percent falls on prices in less than a month.
This can be read on stock prices in oil companies. Equinor (formerly Statoil) has decreased by 7.4 percent during the period, Aker BP, which has Kjell Inge Røkke as dominant owner, has decreased by 21.9 percent. According to Finansavisen, this means that Aker BP on paper has been worth SEK 30 billion less in one month.
The newspaper quoted in its Saturday edition the latest month's stock exchange for oil-related stocks.
According to Finansavisen, companies that provide services to oil companies have noted the oil price drop. For example, the seismic company Petroleum Geo Services has decreased by 34.1 percent. A third of the value is gone.