Report on Sultanate Crude Oil and Condensate Production in August 2018

Muscat, The monthly report issued by the Ministry of Oil and Gas indicated that the Sultanate’s production of crude oil and condensate throughout August 2018 amounted to (30,209,500) barrels, with a daily average of (974,500) barrels. While, the total exported quantities of Oman crude oil during August 2018 has reached (25,208,088) barrels.

For the second successive month, the proportion of China’s import of Omani crude oil cut off by 2.85%, compared with last month (July 218) to reach 80.66% level, but remaining at the top of the importing countries of Oman Exported volumes. In contrast, imports by Japan continued the up track by 3.39% on m/m basis, whilst the imported rate of Myanmar decreased by 0.36%.

The Crude Oil Prices have witnessed a fallback during August 2018 futures trading compared with July 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 (NYMEX) reached (USD 67.27) per barrel, down by (USD 2.23) only compared with previous month’s trading. While the average price for North Sea Brent mix at the Intercontinental Exchange (ICE) in London amounted to (USD 73.84) per barrel, down by (USD 1.11) compared with July 2018.

With the same trend, the average price for Oman Crude Oil Future Contracts at the Dubai Mercantile Exchange (DME) witnessed a price drop by 0.7% compared with previous month. The official selling price for Oman Crude Oil during August 2018, for the delivery month of October 2018, settled at USD (72.64), lower by (0.53) compared with July trading prices. The trading price ranged between (USD 70.00) per barrel, and (USD 76.29) per barrel.

The crude oil prices’ downtrend through August 2018 attributed to several factors that negatively affected the trading settlements. The shift-up in U.S oil inventories, and the escalating trade dispute between the United States of America and China, have squeezed the oil markets. Where these trade tensions threaten the volume of China’s import of US crude oil and therefore slowing the Chines demand. The negative trend in oil prices also harmed by the rise of the dollar exchange rate, which leads to the weakening of other commodities priced in the US currency, such as crude oil.

Source: Oman News Agency