China remained the top market for Omani crude exports in June 2020, receiving 94.28 per cent of total exports averaging 899,412 barrels per day (bpd), according to the Ministry of Oil and Gas. It represented a 6.77 per cent increase over May figures. Modest quantities were also lifted by Malaysia (2.63 per cent), India (1.95 per cent) and South Korea (1.14 per cent).
According to the Ministry’s monthly report, average daily production of crude oil during June 2020 reached 683,625 barrels, which was up 2.40 per cent m-o-m compared with the daily production average of May 2020. Exports of Oman blend crude oil of 899,412 bpd barrels represented a 22 per cent increase over the previous month.
The average price of Oman’s Crude Oil futures contract on the Dubai Mercantile Exchange increased 23.5 per cent compared with previous month. The monthly official selling price for Oman Crude oil for July 2020 delivery – traded during May 2020 — was $41.58 per barrel, an increase of $7.90 compared with the May 2020 official selling price. The daily trading marker price ranged between $39.04 per barrel and $44.07 per barrel.
“Crude oil prices experienced an optimistic view during trades in June 2020 due to several factors, which had direct and positive impact on prices,” said the Ministry in a statement. “The main factors that supported positive trading sentiments were signs of improved demand for fuel as countries began to reduce public isolation measures imposed to prevent the spread of the emerging coronavirus, in addition to reducing crude supplies from two major producers and continuing to reduce public isolation measures related to the coronavirus despite a record increase in infection cases around the world. Also, the number of American drilling rigs decreased, which reflected a decrease in US oil production.”