Muscat, The monthly report issued by the Ministry

of Oil and Gas indicated that the Sultanate’s production of crude oil

and condensate throughout June 2018 amounted to (29,205,000)

barrels, with a daily average of (973,500) barrels.

The total exported quantities of Oman crude oil during June 2018

has reached (23,476,212) barrels, with a daily average of (782,540)

barrels.

Rose by 9.65% m/m, People’s Republic of China imported 83.55% of

the total exported quantities of Omani Crude Oil during June 2018.

Similarly, imports by Indian sub-continent climbed by 4.73%, on a m/m

basis, whilst the imports of Japan slipped by 0.40% compared to May

imported quantities. On the other hand, June volumes have witnessed

a demand for Omani crude by the buyers from Thailand at 2.02% of

total exported quantities.

Prices have witnessed a fallback during June 2018 futures trading

compared with May 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) amounted to (USD 67.23)

per barrel, lower by (USD 2.73) compared with May 2018. While the

average North Sea Brent mix at the Intercontinental Exchange (ICE) in

London dropped by (USD 75.94) per barrel, down by (USD 1.07)

compared with previous month’s trading.

With the same trend, the average price for Oman Crude Oil Future

Contracts at the Dubai Mercantile Exchange (DME) witnessed a price

drop by 1.1% compared with previous month. The official selling price

for Oman Crude Oil during June 2018, for the delivery month of August

2018, settled at USD (73.61), lower by (0.80) eighty cents only

compared with May trading prices. The trading price ranged between

(USD 71.06) per barrel, and (USD 75.32) per barrel.

The down trend in crude oil prices in June 2018 was attributed to

several key factors that negatively affected the prices, including the rise

in the exchange rate value of the US dollar, which placed pressure on

primary commodities priced in US currency. Also, the increasing

number of active drilling rigs in the United States which led to

continued speculation around higher U.S. oil production. Another main

factor negatively impacted the oil prices was the market speculations

ahead of the June meeting of the Organization of the Petroleum

Exporting Countries (OPEC) with its non-OPEC partners, where the

market was expecting a decision to boost production by two million

barrels. However, oil prices received some positive boost around some

days of the month as the US-China commercial trade war dispute

increases.

Source: Oman News Agency