Oman’s oil production, exports decline in Q1

Oman’s total oil production decreased by 5.5 per cent in the first quarter of 2021 to 85.825mn barrels compared to 90.848mn barrels produced in the corresponding period of last year.

The daily average oil output during the first three months of 2021 came at 953,600 barrels per day (bpd), 4.5 per cent lower compared with 998,300 bpd in the same period of 2020, according to the Ministry of Energy and Minerals’ data released by the National Center for Statistics and Information (NCSI) on Wednesday.

Of the total oil production in the sultanate, crude oil output fell by 15.5 per cent to 65.707mn barrels in the first quarter of 2021 from 77.787mn barrels in the corresponding period of 2020, whereas the production of condensates surged by 54 per cent to 20.117mn barrels in 2021 against 13.061mn barrels in the first three months of last year.

On the exports front, the NCSI data showed that the sultanate’s oil shipments edged down 0.8 per cent to 69.205mn barrels in the first quarter this year compared to 69.772mn barrels in the same period of last year.

Oman’s oil exports to Japan and South Korea remained negligible during the January–March period of 2021, while exports to other countries also slightly decreased.

Oil exports to China, the largest buyer of Oman’s crude, decreased by 4 per cent to 58.786mn barrels during the first quarter of 2021 compared to 61.260mn barrels in the same period of the previous year, the ministry’s data showed.

The sultanate’s oil exports to India, by contrast, sharply jumped by 183 per cent in the first quarter to 8.360mn barrels compared to 2.948mn barrels in the corresponding period of 2020.

The average price at which Oman sold its crude during the January–March period of 2021 remained 23 per cent lower at US$49.5 per barrel compared to US$64.4 per barrel recorded for the same period of last year.

Global oil prices on Wednesday fell for the second consecutive day over the fears of rising number of coronavirus infections, especially in India, and expected rise in the US crude inventories.

Oman crude price at the Dubai Mercantile Exchange dropped by 3.1 per cent on Wednesday and closed at US$63.85 per barrel (for June delivery).

Global benchmark Brent crude (for June delivery) traded 29 cents lower at US$66.28 per barrel in London on Wednesday afternoon.