07 July 2016
Muscat - Global economic power China retained its dominant position as the top destination for Omani oil exports, lifting a staggering 77 per of total crude exports in 2015, the Central Bank of Oman (CBO) said in its newly released annual report.

Of a total 308.1 million barrels of Omani crude shipped out last year, the lion's share -- amounting to 237.6 million barrels -- was exported to China, the apex bank said, citing statistics furnished by the Ministry of Oil Gas.

China's share of Omani crude exports has been growing exponentially in recent years. From 45 per cent in 2011 (of total exports of 269.4 million barrels), it spiked to 50 per cent in 2012 (total exports 279.8 million barrels), rising to 59.4 per cent in 2013 (total exports 304.2 million barrels). In 2014, the Asian giant imported a hefty 72 per cent of total Omani exports 292.2 million barrels.

However, with the Chinese economy witnessing a significant slowdown, of late, the implications for crude imports, notably from long-time supplier Oman, is a subject of some concern, according to market observers.

The apex bank, for its part, has said it will monitor the slowdown for any signs of impacts for the uptake of Omani crude.

Ranked a distant second was Taiwan, which lifted 27.8 million barrels of Omani crude last year (9 per cent of the total). Taiwan has, of late, been importing increasing volumes of crude from the Sultanate, dislodging other long-time importers, notably Korea, Japan and India, as important markets for the commodity.

According to CBO figures, imports by Taiwan have been largely on an uptrend. From 9.6 million barrels in 2011, crude shipments to the island tripled to over 33.4 million barrels a year later, before declining to 27.4 million barrels in 2013. Imports however peaked a year later to 33.9 million barrels.

Other notable importers of Omani crude in 2015 were Singapore (10 million barrels), Japan (9.6 million barrels), Thailand (9.4 million barrels), South Korea (5.9 million barrels), and India (4.6 million barrels.)
Significantly, while the hydrocarbon sector continues to play a pivotal role in the Omani economy, its contribution to the nation's gross domestic product (GDP) is on a downslide. In 2015, the sector accounted for 33.9 per cent of nominal GDP in 2015, versus 47.2 per cent a year earlier.

The CBO, however, noted that the latest dip was not entirely the result of ongoing economic diversification efforts and other structural changes. "The sharp decline in the crude oil prices in the global market that was not accompanied by a significant increase in crude oil and gas production in Oman during the year 2015, could explain the reduction in the contribution of this sector to the aggregate GDP," the apex bank stated.

Nonetheless, other key macroeconomic indicators have pointed to the continued dominance of the hydrocarbon sector in the Omani economy, the CBO said.

"Oil and gas revenues as a percentage of GDP stood at 26.4 per cent in 2015 and accounted for 78.7 per cent of government revenues and about 52.1 per cent of total merchandise exports (including re-exports) during the year," the apex bank noted.

During 2015, the average price of Omani crude fluctuated from a peak of $78.24 in January to a low of $45.76 in November. Output rose moderately to a daily average of 981.1 thousand barrels in 2015, versus 943.5 thousand barrels during 2014.

© Oman Daily Observer 2016