Sultanate Crude Oil Production Hits over 29 Million Barrels in April 2019

Muscat, The Sultanate’s crude oil and

condensates production stood at 29,114,010 barrels during April 2019,

with a daily average of 970,467 barrels.

The monthly report issued by the Ministry of Oil and Gas pointed

out that the total exported quantities of the Omani crude oil during April

2019 reached 23,949,017 barrels, with a daily average of 798,301

barrels.

The Asian markets received the bulk of the Omani crude oil

exports during April 2019. China remained on the top list of the largest

buyers of the Omani oil exports with 83.83%, comprising an increase of

2.46%, compared to March 2019.

Imports by India and Japan increased by 1.74% and 5.11%

respectively to settle at 5.62% and 10.55% respectively of the total

exported quantities.

The crude oil prices witnessed an increase during April 2019

futures trading (June 2019 Delivery) compared with March 2019 for the

major crude oil benchmarks around the world.

The average price for West Texas Intermediate crude oil at the New

York Mercantile Exchange (NYMEX) reached USD 63.91 a barrel, an

increase by USD 5.51 compared with March 2019 trading.

The average price for North Sea Brent mix at the Intercontinental

Exchange (ICE) in London stood at USD 71.63 per barrel, an increase

by USD 4.60 compared with March 2019.

The average price for Oman Crude Oil Future Contracts at the

Dubai Mercantile Exchange (DME) witnessed a price hike by 6.2%

compared with previous month. The official selling price for Oman

Crude Oil during April 2019, for the June Delivery 2019 settled at USD

71.15, an increase by USD 4.18 compared with May Delivery 2019

prices. The trading price ranged between USD 68.24 per barrel and

USD 74.73 per barrel.

The high price of crude oil during April 2019 is attributed to several

factors that directly affected prices, most notably the US imposing

sanctions on Iran and Venezuela, thus affecting oil supplies, as well as

the continuation of the OPEC and its allies’ agreement to cut

production for six months starting from January 2019. It has pledged to

cut production by 1.2 million barrels per day since the beginning of the

year to shrink surplus and to support prices.

Prices have also been bolstered by expectations of a reduction in

global supplies from ongoing fighting in Libya, the dollar index fell to

the lowest level for more than two weeks against the Euro, which make

oil less expensive for non-US buyers. The US decision to end the

exceptions granted to 8 countries to import the Iranian oil also

contributed in supporting prices, besides the continued decline in the

number of oil drilling platforms and shrinking expectations for

production growth from the largest shale oil fields in the US.

Source: Oman News Agency