Sultanate crude oil production rises in January 2018

The Sultanate’s total crude oil and condensates production during January 2018 stood at 29,978,550 barrels, a daily average by 967,050 barrels, according to the monthly report issued by the Ministry of Oil and Gas. The total quantities of crude oil exported abroad during January 2018 stood at 25,064,578 barrels, a daily average of 808,535 barrels, comprising a rise by 1.90 per cent compared to December 2017 when calculating the daily average.
With the beginning of 2018, the demand for Omani crude oil by China grew by 26.55 per cent, compared with the quantities in December 2017.
China’s share of total exported Omani crude oil hit 76.11 per cent in January 2018. In the same trend, India’s imports of the Omani oil rose by 7.77 per cent, compared with its share in December 2017. Taiwan’s imports rose slightly by 0.07 per cent.
The year 2018 began with an increase in the prices of crude oil for reference oils around the world during January 2018 compared with the December 2017.
The average price of West Texas crude grade (March delivery 2018) in The New York Mercantile Exchange (NYMEX) stood at $ 63.62 per barrel, comprising a rise by $ 5.64, compared with December 2017.
The average price of North Sea Brent grade reached $ 69.8 a barrel in London Intercontinental Exchange (ICE), constituting a rise by $4.99 per barrel over December 2017.
The trading of Oman Crude Oil Future Contract at Dubai Mercantile Exchange (DME Oman) rose by 7.7 percent compared with January 2018.
Oman oil price (March Delivery 2018) stood at $ 66.32 a barrel, comprising a rise by $ 4.75 compared to February delivery 2018.
It averaged between $ 64.19 a barrel and $ 68.10 a barrel.
The report pointed out that the rise in crude oil prices during January trading 2018 is attributed to several factors that directly affected prices as the outbreak of some domestic political unrest in the Islamic Republic of Iran led to rising of fears of speculators in the oil markets from the spread of these disturbances and their expansion, which may adversely affect the oil supplies.
Other key factors that contributed to the improvement in prices were the publication of data indicating a continuing decline in the number of US drilling platforms against low levels of commercial oil inventories in the United States (US).
Further, other factors are represented in the depreciation of the US dollar, as well as statement of the Saudi Arabia and other producers in relation to their commitment of oil production cuts agreement after 2018 if there is a need for positive support and improvement of oil prices during January 2018.