Oman's crude oil production exceeds 30 million barrels in December
January 8, 2020 | 4:26 PM
by Times News Service
Photo: File

Muscat: Oman's total production of crude oil and condensate in December 2019 reached 30,08 million barrels, with a daily average of 970,466 barrels, the monthly report published by the Ministry of Oil and Gas (MOG) shows.

The total exported quantities of Oman crude oil during December 2019 reached 28.56 million barrels, with a daily average of 921,325 barrels, the report further added.

Chinese imported volume of Oman's crude oil during the month, recorded 82.76 per cent of the total exports of Omani crude oil, compared with the previous month (November 2019). On the other hand, Japan's imports of Omani crude increased by 3.05 per cent to reach 6.60 per cent compared with November quotas. It is worth mentioning that December imports witnessed a return of demand from the buyers in South Korea.

The crude oil prices increased during December 2019 futures settlement trading compared to November 2019 for major crude oil benchmarks around the world. The West Texas Intermediate (WTI) crude oil at the New York Mercantile Exchange (Nymex) has averaged US$59.65 a barrel, up by US$2.56 compared to November 2019 trading. Likewise, North Sea Brent blend on the ICE in London averaged US$65.17 a barrel, an increase of US$2.46 compared to November 2019.

Similarly, the average monthly price for Oman Crude Oil Future’s Contract at the Dubai Mercantile Exchange (DME) rose by 4.3 per cent compared with the previous month. The official selling price (OSP) for Oman Crude Oil during trading of December 2019, for the delivery month of February 2020, settled at US$65.49 per barrel, an increase by US$2.68per barrel compared to January 2019 delivery. Where the daily trading marker price ranged between US$61.76 per barrel and US$68.31 per barrel.

During December 2019, several factors have fueled the market and eventually the prices to climb. The agreement of Organisation of Petroleum Exporting Countries (Opec) and Opec Plus to deepen the production cut by 500,000 per day of crude oil in the first quarter of 2020, has supported the oil prices move and curb the expectations of oversupply in the market.

Moreover, the increase in domestic demand for fuel in China and thus improving in manufacturing activities, and this been observed as an indication of healthy economic growth and extra oil demand in China.

Besides, the announcement by the United States and China of the "first stage" agreement to settle the trade dispute and the decline in United States commercial inventories have collectively boosted investor confidence in improving demand for oil in the world's largest economies.

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