China lifts 90pc of Omani crude exports in September

Muscat: China, the leading market for Omani crude, saw a 10.08 per cent uptick in exports during month of September 2018, the Ministry of Oil & Gas said in its monthly report published here yesterday.

China’s share of Omani crude exports climbed to 90.74 per cent, the Ministry said. At the same time, imports by Japan and India declined by 4.19 per cent and 2.12 per cent respectively.  Crude exports totaled 27.078 million barrels of crude in September, representing a daily average of 902,611 barrels.

Oman’s production of crude oil and condensate throughout September 2018 amounted to 29.706 million barrels, representing a daily average of 990,200 barrels.

Crude prices jumped in futures trading during September 2018 versus figures for August 2018 for all the major global crude oil benchmarks. The average price for West Texas Intermediate crude oil at the New York Mercantile Exchange (NYMEX) reached $69.91 per barrel, up $2.64 over the previous month. The average price for North Sea Brent mix at the Intercontinental Exchange (ICE) in London climbed to $79.11 per barrel, up $5.27 compared with the August 2018 average.

Likewise, the average price for Oman Crude Oil Future Contracts at the Dubai Mercantile Exchange (DME) witnessed a 8.4 per cent increase compared with figures for the previous month. The official selling price for Oman Crude Oil during September 2018, for the delivery month of November 2018, settled at $78.72, boosted by $6.08 compared with August trading prices. The trading price ranged between $75.26 per barrel and $88.96 per barrel.

“The uptrend in crude oil prices in September 2018 futures trading has been attributed to several factors that positively affected trading settlements, such as the shift-down in US oil inventories and the increase in global demand for the medium and heavy crude grades,” said the Ministry in its report.

“The extra demand came especially from the Asian buyers as a result of the market anticipation of a new round of US sanctions against Iran, resulting in traders concerned about the lack of global supplies. The Oil Market has been relieved after OPEC’s decision to maintain the same production levels and to eliminate any immediate increase to compensate for the drop in supplies from Iran has also boosted prices. In addition, the prices received some strong support by the publication of statistics indicating an imminent approach to balance the global supply and demand, as well as the market uncertainty of excess quantities that to be used as a reserve to cover supply shortfalls,” it added.