Oman’s Crude Production Hikes in April, But Exports Dip

Oman’s daily average production of crude oil continued to remain above one million barrels per day (bpd) during the first four months of 2023, up by 2.4 % in comparison to daily average output recorded in the same period of last year. Daily average oil output during the January-April period of 2023 increased to 1.065 million bpd compared with 1.04 million bpd in the same period of 2022, the data released by National Centre for Statistics and Information (NCSI) showed. The sultanate’s total oil production in the first four months of 2023 also grew by 2.4 % to 127.8 million barrels compared to 124.8 million barrels in the same period of last year. Of the total production, crude output increased 1.7 % year-on-year to 100.5 million barrels during the January-April period, while condensates output grew 5.0 % to 27.2 million barrels during the first four months of 2023. The sultanate’s total oil production for the full year 2022 had increased by nearly 10 % to 388.4 million barrels compared to 354.5 million barrels recorded in 2021.

Exports decline 6.7%

Oman’s oil exports declined by 6.7 % during January-April this year to 101.5 million barrels compared with 108.8 million barrels recorded in the corresponding period of 2022. In contrast, total oil exports for the full year 2022 had increased by 10.6 % to 319.5 million barrels in comparison with 288.9 million barrels in 2021, the NCSI data showed. Exports to China, the largest buyer of Oman’s crude, accounted for nearly 92 % of the total oil exports in the first four months of this year. Total exports to China rose by 9.9 % to 93.1 million barrels during January-April this year compared to 84.7 million barrels in the same period of 2022. On the other hand, exports to India dropped by 87.1 % to just 2.21 million barrels during the first four months of 2023 from more than 17 million barrels in the same period of 2022. Oil shipments to Japan and South Korea also decreased in the first four months of this year.

Average oil price at US$82

The average price at which Oman sold its crude during the first four months of 2023 marginally decreased 0.7 % to US$81.7 per barrel against US$82.2 per barrel recorded in the same period of 2022. However, average oil price for April remained at US$82.2 per barrel compared with the March price at US$80.9, the NCSI data showed. Oman crude price (for July delivery) on Monday increased 0.6 % to close at US$75.7 per barrel at the Dubai Mercantile Exchange (DME). Oil prices have softened in recent months from their above US$100 per barrel levels recorded during last year. The average price of Oman crude during 2022 had surged to US$95.4 per barrel from US$64.3 per barrel recorded in the previous year. As a result of high oil revenues, Oman posted a budget surplus of RO1.14 billion (US$2.96 billion) for the full year 2022 against an estimated deficit of RO1.55 billion (US$4.03 billion) in the beginning of last year. As a precaution against oil price volatility, Oman’s 2023 state budget is based on an average oil price estimate of US$55 per barrel and average oil production of 1.175 million barrels per day.