Muscat – Oman’s daily average production of crude oil continued to remain above one million barrels per day (bpd) during the first four months of 2023, up by 2.4 per cent in comparison to daily average output recorded in the same period of last year.

Daily average oil output during the January-April period of 2023 increased to 1.065mn bpd compared with 1.04mn bpd in the same period of 2022, the data released by National Centre for Statistics and Information (NCSI) showed.

The sultanate’s total oil production in the first four months of 2023 also grew by 2.4 per cent to 127.8mn barrels compared to 124.8mn barrels in the same period of last year.

Of the total production, crude output increased 1.7 per cent year-on-year to 100.5mn barrels during the January-April period, while condensates output grew 5.0 per cent to 27.2mn barrels during the first four months of 2023.

The sultanate’s total oil production for the full year 2022 had increased by nearly 10 per cent to 388.4mn barrels compared to 354.5mn barrels recorded in 2021.

Exports decline 6.7%

Oman’s oil exports declined by 6.7 per cent during January-April this year to 101.5mn barrels compared with 108.8mn barrels recorded in the corresponding period of 2022.

In contrast, total oil exports for the full year 2022 had increased by 10.6 per cent to 319.5mn barrels in comparison with 288.9mn barrels in 2021, the NCSI data showed.

Exports to China, the largest buyer of Oman’s crude, accounted for nearly 92 per cent of the total oil exports in the first four months of this year. Total exports to China rose by 9.9 per cent to 93.1mn barrels during January-April this year compared to 84.7mn barrels in the same period of 2022.

On the other hand, exports to India dropped by 87.1 per cent to just 2.21mn barrels during the first four months of 2023 from more than 17mn barrels in the same period of 2022. Oil shipments to Japan and South Korea also decreased in the first four months of this year.

Average oil price at $82

The average price at which Oman sold its crude during the first four months of 2023 marginally decreased 0.7 per cent to US$81.7 per barrel against US$82.2 per barrel recorded in the same period of 2022.

However, average oil price for April remained at US$82.2 per barrel compared with the March price at US$80.9, the NCSI data showed.

Oman crude price (for July delivery) on Monday increased 0.6 per cent to close at US$75.7 per barrel at the Dubai Mercantile Exchange (DME).

Oil prices have softened in recent months from their above US$100 per barrel levels recorded during last year. The average price of Oman crude during 2022 had surged to US$95.4 per barrel from US$64.3 per barrel recorded in the previous year.

As a result of high oil revenues, Oman posted a budget surplus of RO1.14bn for the full year 2022 against an estimated deficit of RO1.55bn in the beginning of last year year.

As a precaution against oil price volatility, Oman’s 2023 state budget is based on an average oil price estimate of US$55 per barrel and average oil production of 1.175mn barrels per day.