Malaysia resumes crude imports from Oman

Malaysia was among a number of countries that have recommenced imports of Omani crude, lifting 7.88 per cent of total exports of 24.115 million barrels for the month of June, the Ministry of Oil and Gas announced its monthly report.

Thailand (2.08 per cent), Tanzania (1.66 per cent) and South Korea (1.05 per cent) were also among destinations for Omani crude shipments during the month.

China, however, maintained its dominant position as the biggest destination for Omani crude, lifting 70.06 per cent of the total, which was higher by 5.15 per cent over the previous month’s volume. Japan was a distant second with a 13.34 per cent share, which had grown by 6.23 per cent over the previous month. India, with 3.94 per cent, saw its share fall by 8.05 per cent from the previous month.

Crude and condensation production for June 2019 totalled 29.132 million barrels, representing a daily average output of 971,070 barrels. Exports averaged 803,846 barrels per day during the month.

Futures trading of crude oil prices witnessed a decline trading movement during June 2019 compared with May 2019 for most major crude oil benchmarks around the world. The average price for West Texas Intermediate crude oil at the New York Mercantile Exchange (NYMEX) averaged $54.85 per barrel, declining by $6.11 compared with the previous trading’s month. North Sea Brent mix at the Intercontinental Exchange (ICE) in London ended at $63.04 per barrel, down by $7.20 compared with May 2019. Likewise, the average price for Oman Crude Oil Future’s Contract at the Dubai Mercantile Exchange (DME) declined by 11.8 per cent compared with the previous month. The official selling price for Oman Crude Oil for the delivery month of August 2019, settled at $61.72, down by $8.20 compared with May 2019 trading prices. The daily average trading marker price ranged between $59.37 per barrel and $64.63 per barrel.

The decline in crude oil prices during the month of June 2019 was influenced by several negative factors. Most notably, the demand for crude oil declined due to expectations of a global economic slowdown, while US crude inventories saw an unexpected rise, which intensified investor fears on undermine long-term demand for crude. In addition, US trade disputes with Mexico and China have also contributed to price cuts this month, and as well as the emergence of several statements from some of the producing countries, indicating a possible disagreement between major producers to extend the agreement to reduce production. Finally, the stability of US stock prices also affected oil prices, the Ministry added.

Source: Oman Observer