China and India were the only two markets for Omani crude exports in July, the latter lifting 11.19 per cent of total exports of 778,012 barrels per day (bpd) for the month, an increase of 9.25 per cent from the previous month. China, long the dominant importer of Omani crude, accounted for the remaining 88.81 per cent, the Ministry of Oil and Gas said in its monthly report.
Crude oil production during July 2020 averaged 671,275 bpd, representing a decline of 1.85 per cent m-o-m compared with the June 2020 daily production average. Exports of 778,012 bpd were lower by 13.5 per cent compared with the previous month.
Oil prices for all reference crude oil grades around the world experienced a bullish trend during the trading days of July 2020 -- for September 2020 delivery -- compared with trading of June 2020. The average price of West Texas Intermediate Crude Oil at the New York Mercantile Exchange (NYMEX) settled at $40.91 per barrel, an increase by $2.42. The average price of North Sea Oil (Brent) at the Intercontinental Exchange (ICE) in London averaged $43.22 per barrel, rising by $2.45 compared with trading during July 2020.
The average price of Oman’s Crude Oil futures contract on the Dubai Mercantile Exchange similarly increased by 4.9 per cent compared with the previous month. The monthly official selling price for Oman Crude oil for September 2020 delivery – traded during July 2020 -- was $43.62 per barrel, an increase of $2.03 compared with the June 2020 official selling price. The daily trading marker price ranged between $42.73 per barrel and $44.98 per barrel.
“Crude oil prices experienced overall optimistic sentiments during trading in July 2020 due to several factors, which had direct and positive impact on prices. The main factors that supported positive trading sentiments were some of OPEC+ countries curbing their production to more than what was agreed. In addition, oil flows to Asia rose for a third consecutive month, reflecting healthier demand. Moreover, data showed that US oil companies have reduced the number of oil rigs month on month, which reflects the expectation of a of lower production growth in the USA,” the Ministry added.