China lifts 92pc of Omani crude exports in March

China remained the top destination for Omani crude exports in March 2020, lifting 92.2 per cent of exports averaging 738,348 barrels per day (bpd) during the month, the Ministry of Oil and Gas announced here yesterday. India came a distant second with 4.36 per cent of exports, followed by Myanmar with a 3.44 per cent share.

Oman’s daily production of crude oil and condensate during March 2020 reached 1,078,475 barrels, which was up 12.83 per cent over figures for February 2020.

The prices of benchmark crudes around the world declined during March 2020 – for delivery in May 2020 – compared with trading month of February 2020. The average price of West Texas Crude Oil at the New York Mercantile Exchange (NYMEX) settled at $30.67 per barrel, declined by $20.02 per barrel, whereas the average price of North Sea Oil (Brent) at the Intercontinental Exchange (ICE) in London reached $33.73 per barrel, which was lower by $21.7 per barrel in comparison with figures for February 2020.

The average price of Oman’s Crude Oil future contracts at DME also dropped by 36.2 per cent compared to the previous month. The monthly average price of Omani crude oil during trading in March 2020 – for delivery in May 2020 – declined to $34.85 a barrel, which was lower by $19.77 per barrel compared with April 2020 deliveries. The daily trading price ranged between $23.95 per barrel and $52.15 per barrel.

“Crude oil prices have experienced a collective decline during the trading of March 2020 due to several factors, which had direct and negative impact on prices. The continued negative impact of the spread of the coronavirus on the global economy, has forced the Organization of Petroleum Exporting Countries (OPEC) and the US Energy Information Agency to reduce their expectations for oil demand. In addition, the decrease in global demand for oil, gasoline and aviation fuel due to restrictions of movement and gatherings and the closure of companies and schools. Also, fears from a global recession due to the closures imposed by governments to contain the spread of the disease,” said the Ministry in a statement.