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
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