Muscat – Oman’s oil production has experienced a notable decline, with total output falling by 5.1% to 332.7mn barrels in the first 11 months of 2024, down from 350.5mn barrels in the same period last year, according to data released by the National Centre for Statistics and Information (NCSI).

The figures show a 6.5% year-on-year decrease in crude oil production, which dropped to 254.6mn barrels in the January-November period this year, compared with 272.4mn barrels during the same period in 2023. However, condensate production remained stable at 78mn barrels, the same as last year.

Oman’s average daily oil output during January – November period was recorded at 993,100 barrels per day (bpd), reflecting a 5.4% decline from 1.049mn bpd during the corresponding period in 2023. November’s production averaged 984,800 bpd, marking the lowest monthly output in nearly two years. The decline in crude production is primarily attributed to Oman’s adherence to OPEC+ production cut agreements.

In early 2024, Oman and fellow OPEC+ members agreed to extend voluntary production cuts into the second quarter. Oman implemented an additional voluntary reduction of 42,000 bpd, effective until the end of June 2024, on top of a previously announced cut of 40,000 bpd .

As a result of lower oil production this year, Oman’s hydrocarbon GDP contracted by 2.8% during the first nine months of 2024, while non-hydrocarbon GDP grew by 4.2% over the same period. Within the hydrocarbon sector, oil activity declined by 4.1%, whereas natural gas activity rose by 4.7%.

The sultanate’s overall real GDP – gross domestic product at constant prices – grew by 1.9% in the first nine months of 2024.

Exports reach 282mn barrels

Despite the drop in crude oil output, Oman’s oil exports have remained relatively stable. Total oil exports fell slightly by 0.4% to 282.2mn barrels in the first 11 months of 2024, compared with 283.4mn barrels during the same period last year, according to NCSI data.

Oman sold its crude oil at an average price of $81.80 per barrel during the January-November period, marking a marginal increase of 0.1% from the average of $81.60 per barrel in the same period in 2023.

Exports to China, Oman’s largest customer for crude oil, rose by 1.5% to 264.4mn barrels, compared with 260.6mn barrels a year earlier. The world’s second-largest economy accounted for 93.7% of Oman’s total oil export volume during the January-November period of 2024.

In contrast, exports to Japan saw a sharp decline of nearly 50%, falling to just 4.46mn barrels from 8.89mn barrels in the same period last year. Conversely, exports to South Korea surged by almost 52%, reaching 5.77mn barrels. Oil shipments to India rose by 10.6%, totalling 3mn barrels during the January-November period of 2024.

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