Crude Oil Production increases in Sultanate

By staff - Sat Sep 17, 5:51 am

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Edited bystaff

(ONA)—- The Monthly Report released by the oil Ministry pointed out that the Sultanate’s crude oil and condensates production in August 2011 amounted to 28,147,223 barrel and 907,975 barrel per day(pbd), an increase by 2.91% compared to the production rate in July 2011.

The monthly report also added that the total exported crude oil in August 2011 amounted to 23,868,126 bpd, an average of 769, 940 bpd.

The report pointed out that the Asian markets have received the bulk share of the Omani crude oil exports. China topped the list of Omani crude importers in August 2011 with 48.84% of the total exports, followed by Japan.

As for the movement of the oil markets during August 2011, the oil price witnessed a remarkable decline compared to last month averaging between $81 to $116 per barrel. The average price for American crude oil in New York (Chicago) market amounted to $86.34. The Brent basket averaged $109.91 per barrel.

The report said that the transactions of August started with a sharp drop in price by more than 5%, the biggest in this year since February 2011. The decline is attributed to the economic and financial conditions in the U.S. and a number of European countries coupled with markets concern that such conditions may have negative impact on the growth of the world economy.

On the other hand, the trading Oman Crude Oil Future Contract (DME Oman) at Dubai Mercantile Exchange witnessed a drop in price – as it has been the case with others. Trading averaged between $96 per barrel and $110 per barrel. The average oil price for the Omani Crude Oil to be delivered in October 2011 settled at $ 105.10