Muscat – Oman’s daily average production of crude oil continued to remain above 1mn barrels per day (bpd) in January, up by nearly four per cent in comparison to daily average output recorded in the same period of last year.

Daily average oil output during January 2023 increased to 1.065mn bpd compared with 1.028mn bpd in the same period of 2022, the data released by National Centre for Statistics and Information (NCSI) showed on Monday.

The sultanate’s total oil production in January 2023 grew by 3.6 per cent to 33.023mn barrels compared to 31.869mn barrels in the same period of last year.

Of the total production, crude output rose by 3.5 per cent year-on-year to 25.978mn barrels during January, while condensates output increased 4.1 per cent to 7.045mn barrels during the first month 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.

Oil exports decline 6.9%

Oman’s oil exports declined by 6.9 per cent in January this year to 26.046mn barrels compared with 27.978mn 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 biggest buyer of Oman’s crude, accounted for 83 per cent of the sultanate’s total oil exports in January 2023. However, total exports to China decreased by 13.7 per cent to 21.639mn barrels during January this year compared to 25.061mn barrels in the same month of 2022.

On the other hand, exports to India also dropped by 29 per cent to 1.714mn barrels in the first month of 2023 from 2.416mn barrels in the same period of 2022.

Oman crude price remains elevated

The average price at which Oman sold its crude during January 2023 rose by 7.3 per cent to US$86.2 per barrel against US$80.3 per barrel recorded in the same period of 2022.

However, January price remained lower than December 2022 price when Oman crude averaged at US$90.8 per barrel, the NCSI data showed.

Oman crude price (for April delivery) on Monday gained 0.5 per cent to close at US$82.64 per barrel at the Dubai Mercantile Exchange (DME).

Global oil prices have softened in recent weeks from their above US$100 per barrel levels recorded during last year. The average price at which Oman sold its crude during 2022 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 RO1.146bn for the full year 2022 against an estimated deficit of RO1.550bn in the beginning of last year year. Oman crude prices closed the year 2022 with a second straight annual gain.

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.

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