Crude oil production drops in Oman
The Sultanate’s average daily production of crude oil during November 2020 has recorded at 720,789 barrels. Hence, the daily November average oil production has slipped by 0.04 per cent m-o-m (month over month) compared with October 2020 daily average production, according to the monthly report published by Ministry of Energy and Minerals
Additionally, the per day average exported quantities of Oman Blend crude oil reported 777,207 barrels, and increased by 4.77 per cent compared with last month.
Out of the total imported volumes of Oman Export Blend, China’s imports have fallen by 9.60 per cent m-o-m, compared to October 2020. Contrarily, India’s import has surged by 9.50 per cent m-o-m. The import list has expanded by the import return from Malaysia and Singapore.
Oil prices for all reference crude oil grades around the world have experienced bullish trend during the trading days of November 2020 for January 2021 delivery, compared with the trading of October 2020. The average price of West Texas Intermediate Crude Oil at the New York Mercantile Exchange (NYMEX) settled at $42.66 per barrel, an increase of $2.84. The average price of North Sea Oil (Brent) at the Intercontinental Exchange (ICE) in London averaged $43.98 per barrel, increased by $2.46 compared with trading during October 2020.
The average price of Oman’s Crude Oil futures contract at the Dubai Mercantile Exchange similarly increased by 6.6 per cent compared with the previous month. The monthly official selling price for Oman Crude oil for January 2021 delivery – traded during November 2020 – was announced to be $43.83 per barrel, increased by $2.72 compared with October 2020 official selling price. The daily trading marker price ranged between $48.30 per barrel and $36.67 per barrel. The yearly average for the Oman Crude oil in 2020 reached $46.02 per barrel.
Crude oil prices experienced overall optimistic sentiments during the trading of November 2020 due to several factors, which had a direct and positive impact on prices. Among the most prominent factors that led to the price hike was the announcement of the development of a successful vaccine against COVID-19, and the demonstration of its effectiveness with a rate of 94.5, as signs of hope for a recovery in fuel demand and strong oil demand emerged after the announcement of the development of an anti- COVID -19 vaccine. Besides, a sharp decline in US commercial oil inventories, the decision of the Organisation of the Petroleum Exporting Countries (OPEC) and its non-OPEC allies, within the framework of the OPEC + group, to reduce the size of the cuts of 7.7 million barrels.