Oman's Crude Oil Production Rises in February 2016

The Sultanate of Oman’s total production of crude oil and condensates during February 2016 amounted to 29,397,683 barrels, a daily rate of 1,013,713 barrels, comprising an increase by 0.72 percent compared with January 2016 as for the daily average.

The statistics released by Ministry of Oil and Gas showed that the total quantities of crude oil exported abroad during February 2016 stood at 28,804,712 barrels, a daily rate of 993,266 barrels, comprising a rise by 12.67 percent compared to January 2016.

China's imports declined by 26.39 per cent in February, compared to the previous month. On the other hand, exports to Taiwan, Singapore and South Korea increased by 7.93, 1.67 and 9.79 respectively in comparison with January. Imports of the United States (US) of the Omani crude oil during February 2016 accounted for 7.99 percent of the total Omani oil exports, Oman News Agency, reported, citing the ministry figures.

Referring to the trend in oil prices in the international market, the average price of West Texas crude grade in New York touched US$32.20 per barrel in February 2016, showing a decline with $0.31 a barrel over the previous month.

The average price of North Sea Brent grade reached $33.53 a barrel, an increase of $1.49 per barrel over January.

The trading of Oman Crude Oil Future Contract at Dubai Mercantile Exchange (DME Oman) witnessed a rise during February, as same as other oil types in the world. It averaged between $31.94 and $26.83 per barrel. Meanwhile, Oman oil price (April Delivery 2016) stood at $30.23 comprising a rise by 2.83 cents compared to the March 2016 delivery.

The crude oil prices for most reference oils recovered during February trading compared to settlement prices in January 2016. The prices hovered around $30 per barrel. The Omani crude oil restored some of its profits that was lost last month and increased by more than 10 percent.

This increase is attributed to a number of reasons that directly affected the prices, namely the depreciation of the US dollar to record levels in the past seven weeks. This depreciation makes the raw commodities priced in the US dollar less costly for holders of other currencies.

It is also attributed to the decline in US shell oil production and the recovery of Asian transactions after the release of the US data, which showed a decline in the number of oil rigs operating for nine successive weeks.

Source:WAM