Oman’s Oil Exports Jump This Year as Output Rises

Oman’s daily average production of crude oil increased to 1.06 million barrels per day (bpd) during the first eight months of 2022, up by more than 10% in comparison to 958,600 bpd output recorded in the same period of last year.

The sultanate’s total oil production during January – August period of this year grew 10.3% to 257 million barrels compared with 233 million barrels in the same period of 2021, according to data released by the National Centre for Statistics and Information (NCSI).

Of the total production, crude output jumped by 13.9% year-on-year to 204.6 million barrels during the eight months period, while condensates output decreased 1.7% to 52.4 million barrels.

Oman’s total oil exports grew by 15.4% during the first eight months of 2022 to 217.3 million barrels as compared with 188.3 million barrels recorded in the corresponding period of 2021, the NCSI data showed.

The sultanate’s total oil exports for the full year 2021 had inched up 0.7% to 288.9 million barrels from 287 million barrels in 2020.

Exports to China, the biggest buyer of Oman’s crude, accounted for nearly 77% of the sultanate’s total oil exports during the first eight of this year.

Total oil exports to China grew 7.1% at 167.5 million barrels during January – August period of this year compared to 156.4 million barrels recorded in 2021.

On the other hand, oil shipments to India jumped 54.8% to 29.9 million barrels in the first eight months of this year from 19.3 million barrels in the same period of 2021.

Exports to Japan more than tripled to 8.4 million barrels during January – August period of this year, while shipments to South Korea jumped more than 68% to 9.3 million barrels.

Oil prices on downward trend

Oman crude price has been significantly higher this year as Russia’s invasion of Ukraine had sent global oil prices to their highest level in more than eight years.

The average price at which Oman sold its crude during the first eight months of 2022 surged by more than 40% to US$95.3 per barrel against US$67.9 per barrel recorded in the same period of 2021. The monthly average price of Oman crude for August stood at US$112.9 per barrel, the NCSI data showed.

However, crude prices have been on a downward trend in recent weeks. Oil prices hit nine-month lows on Monday, driven down by an expected decline in fuel demand as several countries opted to increase interest rates to tame rising inflation amid recession fears, with further price pressure coming from a surging US dollar.

On Monday, Oman crude price (for November delivery) sharply fell by US$4.82 to US$84.46 per barrel, the lowest since January 2022. Oman crude further edged down 22 cents to US$84.24 per barrel on Tuesday at the Dubai Mercantile Exchange where it is traded.

Global oil prices, however, jumped almost 2% on Tuesday, helped by a slight decrease in the value of US dollar against major currencies. Brent North Sea crude rose 1.7% to US$85.47 per barrel while US benchmark West Texas Intermediate jumped 1.9% to US$78.11 per barrel.