Oman's crude oil production exceeds 1 million barrels in March
April 14, 2020 | 3:57 PM
by Times News Service
Photo: File

Muscat: The Sultanate’s daily production of crude oil and condensate during March 2020 reached 1,078,475 barrels up by 12.83 per cent in comparison to February 2020, the monthly report published by the Ministry of Oil and Gas (MOG) indicated.

Furthermore, the daily exported quantities of Oman Blend reached an average 738,348 barrels down by 2.41 per cent compared with last month.

Out of the total Omani crude oil exported blend during March 2020, People's Republic of China’s has imported more than 90 per cent, increasing by 2.47 per cent m-o-m, compared with the February 2020 share. The below graph illustrates the percentages of Oman crude oil quantities imported by countries during March 2020.

The prices for reference crude oil around the world have declined during the trading of March 2020 -to be delivered in May 2020- compared with the trading of February 2020. The average price of West Texas Crude Oil at the New York Mercantile Exchange (NYMEX) settled by $30.67 per barrel, a drop by 20.02 only, whereas the average price of North Sea Oil (Brent) at the Intercontinental Exchange (ICE) in London reached $33.73 per barrel a drop by $21.7 only compared with the trading of February 2020.

The average price of Oman’s crude oil future contracts at DME also drops by 36.2 per cent compared with last month. The monthly average price of Omani crude oil during trading of March 2020 to be delivered in May 2020 totalled $34.85 a barrel, down by $19.77 compared with April 2020 delivered, where the daily trading price ranged between $23.95 per barrel and $52.15 per barrel.

Crude oil prices have experienced a collective decline during the trading of March 2020 due to several factors, which had a direct and negative impact on prices.

The continued negative impact of the spread of COVID-19 on the global economy has forced the Organization of Petroleum Exporting Countries (OPEC) and the American Energy Information Administration to reduce their expectations for oil demand. Besides, the decrease in global demand for oil, gasoline and aviation fuel due to restrictions of movement and gatherings and the closure of companies and schools. Also, fears from a global recession due to the closures imposed by governments to contain the spread of the disease. Furthermore, the prices been injured so badly as well because Russia refused OPEC's proposal to implement significant oil production cuts to stabilise the affected prices, which led to a significant increase in supplies from Saudi Arabia and Russia after the two countries failed to reach an agreement to restrict supply.

Subscribe to our newsletter and be the first to know all the latest news