Oman’s oil output drops 1.3% in Jan

Oman’s daily average oil production decreased by 1.26 per cent in January to 958,270 barrels per day compared to the output recorded during the previous month.

The monthly report published by the Ministry of Oil and Gas said that the daily exported quantities of Omani crude stood at 756,586 barrels, a decline of nearly 18 per cent compared to the daily export rate during December 2019.

With increased imports by China, Oman’s oil shipments to the biggest Asian buyer rose 3.2 per cent in January. China accounted for nearly 86 per cent of Oman’s total oil exports last month. Exports to Japan fell by more than 4 per cent in January compared to volumes recorded in December 2019.

Interestingly, the UAE also imported around 8 per cent of

Oman’s total oil exports in January 2020. India accounted for 4 per cent of the sultanate’s total exports.

The average monthly price for Oman crude futures contract at the Dubai Mercantile Exchange (DME) dropped by 0.9 per cent in January compared to the previous month.

The official selling price for Oman crude during trading in January (for March delivery) settled at US$64.89 per barrel. The daily trading market price ranged between US$58.17 per barrel and US$70.45 per barrel.

The ministry’s report said that the drop in crude oil prices during January trading was attributed to several factors that directly and negatively impacted prices.

‘Among the most prominent factors were an unexpected increase in the US stockpiles and the outbreak of the new coronavirus in China, which put the oil markets in critical conditions,’ the ministry said.