Oman crude oil trading on the Dubai Mercantile Exchange averaged $63.96 per barrel in 2019, a fall of around $6/b, or close to 9 per cent, compared to the previous year of $69.94/b.
Over the longer term, Oman averaged $77.70/b over the past decade, compared to the average selling price for Oman of $46.94/b the 2000s and the 1990s average of $17.12/b. Pricing going into year-end finished on a firm note, with the December average of $65.49/b the highest since May. The final settlement price of 2019 was $67.42/b.
The DME Oman futures contract was launched in June 2007. Since inception the highest settlement price of $141.27/b was recorded July 4, 2008, preceding the global financial crisis that wiped more than $100/b from oil prices by year end. The lowest settlement price of $23.72/b on January 21, 2016, amid the global oversupply of crude.
In December 2019, Kuwait announced it would become the latest Middle East government to incorporate DME Oman into its Official Selling Price (OSP), joining Saudi Arabia, Oman, Bahrain and Dubai.
Dr Iman Nasseri, Managing Director, Middle East, FGE said: “Global crude balances have been driven tighter by lower production in the Middle East and higher demand in Asia. In 2020, output will stabilise, however shifts in Middle East crude trade will still be very much apparent, as crude continues to be re-directed away from the US and Europe, to make way for increased US exports to those markets. A tighter crude balance y-o-y will help support the prompt crude market structure throughout 2020. However, on a m-o-m basis, we expect different trends to emerge.”
“The 2020s may be the last decade with oil demand growth continuing while the peak global oil demand is expected sometime in the early 2030s.” he added
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