Muscat – Oman’s daily average production of crude oil increased to 1.06mn barrels per day (bpd) during the first eight months of 2022, up by more than 10 per cent 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 per cent to 257mn barrels compared with 233mn 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 per cent year-on-year to 204.6mn barrels during the eight months period, while condensates output decreased 1.7 per cent to 52.4mn barrels.

Oman’s total oil exports grew by 15.4 per cent during the first eight months of 2022 to 217.3mn barrels as compared with 188.3mn 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 per cent to 288.9mn barrels from 287mn barrels in 2020.

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

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

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

Exports to Japan more than tripled to 8.4mn barrels during January – August period of this year, while shipments to South Korea jumped more than 68 per cent to 9.3mn 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 per cent 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 two per cent on Tuesday, helped by a slight decrease in the value of US dollar against major currencies. Brent North Sea crude rose 1.7 per cent to US$85.47 per barrel while US benchmark West Texas Intermediate jumped 1.9 per cent to US$78.11 per barrel.

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