Muscat, The Sultanate’s production of crude oil

and condensates throughout July 2018 amounted to (30,240,500)

barrels, with a daily average of (975,500) barrels, according to the

monthly report issued by the Ministry of Oil and Gas.

The total exported quantities of the Sultanate’s crude oil during

July 2018 reached (24,080,796) barrels, with a daily average of

(776,800) barrels.

A slight drop by 0.04%, China imported 83.51% of the total

exported quantities of Omani crude oil during July 2018. In contrast,

imports by Japan climbed by 2.30% compared to June imported

quantities. On the other hand, the July imports were marked by the

return of demand for Omani crude to buyers in South Korea and

Myanmar at the rates shown below.

The crude oil prices have witnessed a fallback during July 2018

futures trading compared with June 2018 for the major crude oil

benchmarks around the world. The average North Sea Brent mix at the

Intercontinental Exchange (ICE) in London reached (USD 74.95) per

barrel, down by (USD 0.99), compared with previous month’s trading.

The average price for West Texas Intermediate crude oil at the

New York Mercantile Exchange (NYMEX) amounted to (USD 69.50) per

barrel, higher by (USD 2.36) compared with June 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 0.6% compared with previous month. The official selling

price for Oman Crude Oil during July 2018, for the delivery month of

September 2018, settled at USD (73.17) per barrel, lower by (0.44

cents) compared with June trading prices. The trading price ranged

between (USD 76.11) per barrel, and (USD 69.71) per barrel.

The crude oil prices’ down trend through July 2018 was

attributed to several factors that negatively affected the prices,

including the production hikes in Saudi Arabia and Russia after the

meeting of the Organization of the Petroleum Exporting Countries

(OPEC) with non-member producers in June, which resulted in a

decision to gradually ease the group’s production in order to balance

the supply and demand of global crude oil. Also, the oil markets have

been squeezed by the escalating trade dispute between the United

States of America and China. These trade tensions threaten the volume

of China’s import of US crude oil. In addition, Libya reopened some of

the closed oil ports, which raised the market expectations of the growth

of oil supplies. 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