Over 679K crude barrels produced by the Sultanate during May 2020

Muscat: The Sultanate’s average daily production of crude oil during May 2020 reached (679,334) barrels. The average daily exported quantities of Oman Blend crude oil stood at (737,258) barrels, down by 17.55 per cent compared with April 2020, said the monthly report by the Ministry of Oil and Gas.

During May 2020, China and South Korea were the only destination whereby Oman Export Blend has been sailed to. Nevertheless, China’s imports declined by 11.37 per cent m-o-m, compared with April 2020. Oppositely, imports from South Korea has progressed by 5.66 per cent compare to the last month.

Oil prices for all reference crude oil grades around the world have experienced a bullish trend during the trading days of May 2020 – for July 2020 delivery – compared with trading of April 2020. The average price of West Texas Intermediate Crude Oil at the New York Mercantile Exchange (NYMEX) settled at (USD29.17) per barrel, an increase by (USD6.70). The average price of North Sea Oil (Brent) at the Intercontinental Exchange (ICE) in London averaged (USD32.41) per barrel, a rise by (USD5.76) compared with trading during April 2020.

The average price of Oman’s Crude Oil futures contract at Dubai Mercantile Exchange (DME) similarly increased by 42.4 per cent compared with the previous month. The monthly official selling price for Oman Crude oil for July 2020 delivery – traded during May 2020 – was announced to be (USD33.68) per barrel, and increased by (USD10.03) compared with June 2020 official selling price. The daily trading marker price ranged between (USD28.27) per barrel and (USD37.61) per barrel.

Crude oil prices experienced an optimistic view 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 plus production cut agreement which came into effect on May 1, and the relaxing of lockdown by many countries that were forced due to the pandemic of Covid-19. These two main factors increased global demand for crude oil and petroleum products. In addition, the decline in global stock markets, as well as the subsequently decrease in US crude oil commercial inventories also positively affected oil prices further. –ONA

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