Muscat: The Sultanate’s average daily production of crude oil in June 2020 has reached 683,625 barrels, according to the monthly report by Ministry of Oil and Gas.
The June daily oil production average has surged by 2.40 per cent m-o-m compared with May 2020 daily production average. Furthermore, the average daily exported quantities of Oman Blend crude oil was 899,412 barrels, up by 22 per cent compared with last month.
During June, out of the total Oman Export Blend, China’s imports have increased dramatically by 6.77 per cent m-o-m, compared with May 2020.
Oil prices for all reference crude oil grades around the world have experienced a bullish trend during the trading days of June 2020 -for August 2020 delivery- compared with the trading of May 2020. The average price of West Texas Intermediate Crude Oil at the New York Mercantile Exchange (NYMEX) settled at $38.49 per barrel, an increase of $9.33 only. Whereas the average price of North Sea Oil (Brent) at the Intercontinental Exchange (ICE) in London averaged $40.77 per barrel, a rise by $8.36 only compared with trading during June 2020.
The average price of Oman’s Crude Oil futures contract at the Dubai Mercantile Exchange similarly increased by 23.5 per cent compared with the previous month. The monthly official selling price for Oman Crude oil for July 2020 delivery –traded during May 2020- was announced to be $41.58 per barrel, increased by $7.90 compared with May 2020 official selling price. The daily trading marker price ranged between $39.04 per barrel and $44.07 per barrel.
Crude oil prices experienced an optimistic view during the trading of June 2020 due to several factors, which had a direct and positive impact on prices.
The main factors that supported positive trading sentiments were signs of improved demand for fuel as countries began to reduce public isolation measures imposed to prevent the spread of the emerging coronavirus, in addition to reducing crude supplies from two major producers and continuing to reduce public isolation measures related to the COVID-19 despite a record increase in infection cases around the world. Also, the number of American drilling rigs decreased, which reflected a decrease in US oil production.