Oman’s oil exports during July reached 24.08mn barrels, with daily average exports of 776,800 barrels.
China imported 83.51 per cent of total exported quantities of Omani crude during July. Imports by Japan increased 2.3 per cent in July compared to June. Oman’s oil exports in July were also marked by the return of demand from buyers in South Korea and Myanmar.
Average price of Oman crude future contracts at the Dubai Mercantile Exchange (DME) witnessed a decline of 0.6 per cent in July compared with previous month. Official selling price for Oman crude in July (for September delivery) settled at US$73.17 per barrel, US$0.44 lower compared with average trading price in June. Trading price for Oman crude ranged between US$76.11 per barrel and US$69.71 per barrel during the month.
The decline in prices during July was attributed to several factors, including the production hikes by Saudi Arabia and Russia after the meeting of the Organization of the Petroleum Exporting Countries (OPEC) with non-member producers in June. The meeting between OPEC and non-OPEC producers had resulted in a decision to gradually increase the group’s production in order to balance the supply and demand in global crude market.
Also, the oil markets have been squeezed by the escalating trade dispute between the US and China. These trade tensions threaten the volume of China’s import of US crude oil.
In addition, Libya reopened some of its closed oil ports, which raised the market expectations of the growth in supplies.