China and South Korea were the only destinations for Oman Export Blend in May this year, with the former 87.51 percent of total exports of 737,258 barrels per day (bpd) during the month, the Ministry of Oil and Gas said in its latest monthly report. South Korea’s share increased 5.66 percentage points to 12.49 per cent of the total.
The total production of crude reached 679,334 bpd in May 2020. Exports were down 17.55 per cent compared to the previous month’s average, the Ministry said.
The average price of Oman’s Crude Oil futures contract on the Dubai Mercantile Exchange (DME) rose 42.4 per cent compared to the previous month. The monthly official selling price for Oman Crude oil for July 2020 delivery – traded during May 2020 — was $33.68 per barrel, an increase of $10.03 compared with the June 2020 official selling price. The daily trading marker price ranged between $28.27 per barrel and $37.61 per barrel.
“Crude oil prices experienced an optimistic outlook during the trading of May 2020 due to several factors, which had direct and positive impact on prices. The main factors that supported positive trading sentiments were mainly caused by the OPEC+ production cut agreement that came into effect on May 1, and the relaxing of the lockdown by many countries due to the Covid19 pandemic. These two main factors increased the global demand for crude oil and petroleum products. In addition, the decline in global stock markets, as well as the subsequent decrease in US crude oil commercial inventories also positively affected oil prices further,” the Ministry stated.