Oman’s crude oil and condensate production tops 30mn in November
MUSCAT: The Sultanate’s production of crude oil and condensates in November 2018 amounted to 30.03 million, with a daily average of 1.14 million barrels, according to the monthly report issued by the Ministry of Oil and Gas.
The total exported quantities of Omani crude oil during November 2018 reached 22,746,563 barrels, with a daily average of 758,219 barrels.
Furthermore, Asian markets received the bulk of the Omani crude oil exports in November 2018. Despite the decrease in Chinese imported volumes by 1.68 per cent during the month compared to the quantities in October 2018, China remains at the top of the list of the largest buyers of Omani exports, bringing the imported quantities to 91.64 per cent during the month.
On the other hand, imports from Japan witnessed a drop this month to settle at 3.79 per cent of the total exported quantities. However, oil exports during the month witnessed a return in demand among buyers from India and Malaysia, with an average of 2.64 per cent and 1.94 per cent respectively.
The crude oil prices witnessed a fallback during the November 2018 futures trading compared with October 2018 for the major crude oil benchmarks around the world.
The average price for West Texas Intermediate crude oil at the New York Mercantile Exchange reached US$56.81 per barrel, down by $13.89 compared with the previous month’s trading. The average price for North Sea Brent mix at the Intercontinental Exchange in London decreased to $65.95 per barrel, down by $14.68 compared with October 2018.
Likewise, the average price for Oman Crude Oil Future Contracts at the Dubai Mercantile Exchange witnessed a drop in oil prices by 17.4 per cent compared with the previous month. The official selling price for Oman Crude Oil during November 2018 for the delivery month of January 2019 settled at $66.28, down by $13.92 compared with the delivery month of December 2018. The trading price ranged between $58.64 per barrel and $73.70 per barrel.
The downward trend in the prices of crude oil through November 2018 could be attributed to several factors that negatively affected the trading settlements.
The United States granted eight temporary exemptions, allowing it to continue to buy oil from the Islamic Republic of Iran, as well as continuing the trade dispute between the US and China, which contributed to the decline in the global demand for crude and the increase in supply. A number of major producers, including Saudi Arabia, the UAE, Iraq and Russia, also increased production to near-record levels; there was a rise in US crude oil production and a significant increase in commercial inventories of crude oil in the US. In addition, a rise in the value of the US dollar has put more pressure on dollar-denominated oil prices.