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Oman’s oil exports drop in H1 as shipments to China decline

10 Aug 2021

Sultanate’s Oil exports to China dropped 10.7 per cent to 115.85mn barrels in the first half of 2021 compared to 129.75mn barrels in the same period of 2020

Oman’s oil exports recorded a 4.5 per cent year-on-year decline during the first half of 2021, mainly due to a significant drop in China-bound shipments.

The sultanate’s total oil exports decreased to 139.8mn barrels in the first six months of 2021 in comparison with 146.43mn barrels recorded in the corresponding period of last year, according to the figures released by the National Center for Statistics and Information (NCSI).

With a decline in China’s overall oil imports during the second quarter of this year, Oman’s crude exports to China, the biggest destination for the sultanate’s oil shipments, fell 10.7 per cent during January – June period of 2021 compared to the same period a year ago.

Oil exports to China, which purchased about 83 per cent of Oman’s total oil shipments during the first half of this year, dropped 10.7 per cent to 115.85mn barrels in 2021 compared to 129.75mn barrels in the same period of 2020.

China’s total crude oil imports fell about 3 per cent year-on-year in the first half of 2021 against the same period of last year, according to the media reports.

‘China’s crude oil imports in the first half of 2021 declined for the first time in eight years, pulled down by sharp year-on-year falls in inflows in May and June, as a steep increase in oil prices prompted importers in Asia’s biggest oil consumer to defer purchases and dip into domestic inventories instead,’ S&P Global Platts said in a report.

But analysts and industry officials expect China’s oil imports in the second half of the year to recover and bring overall growth for the year, amid expectations that the anticipated commissioning of new refining capacity would create incremental demand, the report added.

On the other hand, Oman’s oil exports to India and Japan sharply rose during the first six months of the year.

Oil exports to India jumped by 315 per cent to 14.42mn barrels in the first half of 2021 from 3.47mn barrels in the same period a year ago, while exports to Japan surged by 127 per cent to 1.38mn barrels.

South Korea, however, purchased 9.4 per cent less quantity of Oman crude during the January–June period at 4.52mn barrels against 4.99mn barrels in the same period of the previous year. Oman’s oil exports to other countries also dropped more than 52 per cent to 3.6mn barrels.

Production edges down

Oman’s total oil output decreased by 2.5 per cent to 172.84mn barrels in the first half of 2021 from 177.30mn barrels recorded in the same period of 2020, the NCSI statistics showed.

The daily average output remained 1.0 per cent lower this year at 954,900 barrels per day during the January–June period as compared to 964,200 barrels per day for the same period of 2020.

Of the sultanate’s total oil production during the first six months of 2021, crude output fell 10 per cent to 132.92mn barrels while condensate production jumped more than 35 per cent to 39.91mn barrels.

The average price at which Oman sold its crude during the first half of 2021 remained nearly 10 per cent higher at US$56.2 per barrel compared with US$51.1 per barrels achieved in the same period of 2020. On Tuesday, Oman crude price at the Dubai Mercantile Exchange increased 2.2 per cent to US$68.87 per barrel (for October delivery).

 

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