Oman’s Crude Production Falls in February, Exports Hike

Oman’s oil exports rose 5.5% during the first two months of 2024 despite a 4.3% decline in total production due to the sultanate’s commitment to the OPEC+ agreement.

The sultanate’s total oil exports increased to 52.430mn barrels during the January–February period of this year against 49.713mn barrels in the same period of 2023, according to the data released by the National Center for Statistics and Information (NCSI).

Oman’s total oil production decreased 4.3% to 60.073mn barrels during the first two months of 2024 from 62.750mn barrels recorded in the same period of last year. Crude oil production dropped 6.8% to 46.025mn barrels this year from 49.391mn barrels in 2023, while condensate production rose 5.2% to 14.047mn barrels, the NCSI data showed.

The sultanate’s daily average output was 5.9% lower at 1mn barrels per day (bpd) in the first two months of 2024 against 1.063mn bpd in the same period a year ago. The average daily production in February stood at 994,400 bpd, falling below 1mn mark after more than a year.

Earlier this month, Oman and other OPEC+ member nations agreed to extend their voluntary cuts to oil production through the second quarter of 2024. The move is part of the OPEC+ group’s strategy to stabilise the oil market and prices by reducing supply.

Oman extended its additional voluntary cut of 42,000 bpd of crude oil until the end of June 2024, in coordination with some OPEC+ participating countries, the Ministry of Energy and Minerals had announced. This voluntary cut is in addition to the voluntary cut of 40,000 bpd previously announced by Oman in April 2023, which extends until the end of December 2024.

The decline in Oman’s total oil production could have been much more significant if the sultanate had not substantially increased its condensate output, which is exempted from the obligations of the OPEC+ agreement.

Oman substantially increased its condensate output during the past three years, reaching a new annual record in 2023. Total condensates production during 2023 jumped by 8.3% to 85.47mn barrels compared to 78.96mn barrels recorded in 2022, according to NCSI data.

Oman sold its crude at an average price of US$80.2 per barrel during the January–February period of this year, a decrease of two per cent from the US$81.8 per barrel average price achieved in the corresponding period of 2023.

Oil exports to China, the biggest buyer of Oman crude, rose by 15.6% to 51.429mn barrels in the first two months of 2024. However, Oman did not export oil to India during the same period.

While crude exports to Japan fell more than 21% to just 1mn barrels during the first two months of 2024 from 1.267mn barrels a year ago, exports to South Korea remained zero during this period.