December 2017 crude, condensate output totals 29.975m barrels

Business Reporter

MUSCAT, JAN 15

Oman’s production of crude oil and condensate in December 2017 amounted to 29.975 million barrels, averaging 966,952 barrels per day, according to the monthly report of the Ministry of Oil and Gas.

Exports of Omani crude for the month totalled 24,597,918 barrels, representing a daily averages of 793,483 barrels. For the first time during the year, a total of nine countries imported Omani crude. China led the list with a 34 per cent share in December. Its monthly average for the year was 49 per cent. Likewise, Taiwan’s imports dropped slightly by 0.37 per cent compared to its November share, whereas Indian imports inched up 0.40 per cent.

The year 2017 closed with a relatively higher trading’s prices for all main benchmarks crudes around the world The Average price for West Texas Intermediate crude oil at the New York Mercantile Exchange (NYMEX) amounted to $57.98 per barrel, up by $1.17 compared with November 2017. While the average North Sea Brent at the Intercontinental Exchange (ICE) in London amounted to $64.09 per barrel, up by $1.23 compared with the trading of November 2017 .

The average price for Oman Crude Oil Future’s Contract at the Dubai Mercantile Exchange (DME) rose by 1.3 per cent compared with last month. The official selling price for Oman Crude Oil during December, February 2018 delivery reached $61.60, higher by 0.81 cents compared with the January official selling price. The daily trading prices ranged between $59.48 per barrel and $63.98 per barrel.

The increase in crude oil prices during the trading month of December 2017 is attributed to several key factors that directly impacted price movements. These factors can be summed up by the release of data indicating the decline in US crude production along with the increase of US refinery activities.

In addition, global supply has been affected by the shutdown of the forties pipeline in North Sea, as well as Libya’s production declined to 100,000 barrels per day after an explosion hit a main oil pipeline in Libya. Further support to higher crude oil prices came from OPEC and non-OPEC members agreeing to extend the deal of supply cuts to the end of 2018.