Oman's oil production increases

Muscat: The Sultanate’s average daily production of crude oil during December 2020 has recorded at 722,443 barrels, according to the monthly report published by Ministry of Energy and Minerals.

Hence, the daily December 2020 average oil production has picked-up by 0.23 per cent m-o-m compared with November 2020 daily average production. Additionally, the per day average exported quantities of Oman Blend crude oil reported as 806,831 barrels, increased by 3.81 per cent compared with last month.

Out of the total imported volumes of Oman Export Blend, China’s imports have surged by 6 per cent m-o-m, compared to November 2020. With the same-trend, Malaysia's imports have improved during the month, rising by 0.20 per cent, while India's imports declined by 13.40 per cent. Additionally, it is worth noting that the import list has expanded by the import return from Japan, Philippine and Thailand. The provided pie chart demonstrates the destination split of Oman crude oil during December 2020.

Oil prices for all reference crude oil grades around the world have experienced bullish trend during the trading days of December 2020 - for February 2021 delivery- compared with the trading of November 2020. The average price of West Texas Intermediate Crude Oil at the New York Mercantile Exchange (NYMEX) settled at $47.19 per barrel, an increase of $4.53 only. Whereas the average price of North Sea Oil (Brent) at the Intercontinental Exchange (ICE) in London averaged $50.22 per barrel, increased by $6.24 only compared with trading during November 2020.

The average price of Oman’s Crude Oil futures contract at the Dubai Mercantile Exchange similarly increased by 14.1 per cent compared with the previous month. The monthly official selling price for Oman Crude oil for February 2021 delivery – traded during December 2020 - was announced to be $50 per barrel, increased by $6.17 compared with November 2020 official selling price.

The daily trading marker price ranged between $47.33 per barrel and $51.61 per barrel. The yearly average for the Oman Crude oil in 2020 reached $46.0 for a barrel.

Crude oil prices experienced overall optimistic sentiments during the trading of December 2020 due to several factors, which had a direct and positive impact on prices.

Among the most prominent factors that led to the price hike was the Petroleum Exporting Export Group (OPEC) and its allies, increased production slightly from January 2021, but growth is on the major side of the steady stream of supplies. In addition, a sharp decline in US commercial oil inventories had affected positively the oil prices; also, strong demand from Asia for oil derivatives.