Sultanate Crude Oil, Condensate Production Exceeds 30 Million Barrels in November 2018

Muscat, The Sultanate’s production of crude oil and condensates throughout November 2018 amounted to (30,034,140) barrels, with a daily average of (1,138,000) barrels, according to the monthly report issued by the Ministry of Oil and Gas (MOG).

The total exported quantities of the Omani crude oil during November 2018 reached (22,746,563) barrels, with a daily average of (758,219) barrels.

Furthermore, the Asian markets received the bulk of the Omani crude oil exports during November 2018. Despite the decrease in the Chinese imported volumes by 1.68% during the month compared to October 2018 quantities, China remains on the top list of the largest buyers of Omani exports, bringing the imported quantities to 91.64% during the month.

On the other hand, imports from Japan witnessed a drop in this month to settle at 3.79% of the total exported quantities. However, oil exports during the month witnessed a return of demand for buyers from India and Malaysia with average 2.64% and 1.94% respectively.

The Crude Oil Prices witnessed a fallback during 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 (NYMEX) reached (USD 56.81) per barrel, down by (USD 13.89) compared with previous month’s trading. The average price for North Sea Brent mix at the Intercontinental Exchange (ICE) in London decreased to (USD 65.95) per barrel, shrunk down by (USD 14.68) compared with October 2018.

Likewise, the average price for Oman Crude Oil Future Contracts at the Dubai Mercantile Exchange (DME) witnessed a drop in oil prices by 17.4% compared with previous month. The official selling price for Oman Crude Oil during November 2018 for the delivery month of January 2019, settled at (USD 66.28), down by (USD 13.92) only compared with the delivery month of December 2018. The trading price ranged between (USD 58.64) per barrel and (USD 73.70) per barrel.

The crude oil prices’ downtrend through November 2018 attributed to several factors that negatively affected the trading settlements. The United States of America (USA) granted eight temporary exemptions allowing it to continue to buy oil from the Islamic Republic of Iran, as well as continuing trade dispute between the US and China, which contributed to the decline in 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, as well as the 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, which has put more pressure on dollar-denominated oil prices.

Source: Oman News Agency