Oman’s oil exports drop on reduced shipments to India

Muscat – Oman’s oil exports saw a 5.7% year-on-year decline in the first seven months of 2023, primarily due to a significant drop in shipments to India.

The sultanate’s total oil exports decreased to 178.9mn barrels during the first seven months of 2023, compared to 189.7mn barrels recorded in the corresponding period last year, as per data released by the National Center for Statistics and Information (NCSI).

Oman’s oil exports to India, which was the second-largest buyer of Omani crude last year, plummeted by 90.1% to 2.71mn barrels in the January – July period of 2023, compared to 27.37mn barrels during the same period in 2022, the NCSI data showed.

India’s crude oil imports from traditional Middle Eastern suppliers have significantly declined this year, largely due to increased imports of Russian oil.

However, the sultanate’s oil exports to China, the largest buyer of Oman’s crude, increased 12.8% in the first seven months of this year, reaching 163.1mn barrels compared to 144.7mn barrels in the corresponding period last year.

China accounted for approximately 91% of Oman’s total oil shipments from January to July 2023. On the other hand, Oman’s oil exports to Japan and South Korea decreased during the first seven months of 2023. Exports to Japan fell by 20% to 5.84 million barrels, while exports to South Korea dropped by 78% to 1.95 million barrels this year.

Steady production

Oman’s total oil output remained stable at around 223mn barrels during the first seven months of 2023, in comparison to the same period last year, according to NCSI data. The daily average output increased marginally by 0.2% this year to 1.054mn barrels per day during the January–July period, compared to 1.052mn barrels per day for the same period in 2022.

Of the sultanate’s total oil production during the first seven months of 2023, crude output decreased by 1.5% year-on-year to 174.6mn barrels, while condensate production grew by 6.6% year-on-year to 48.9mn barrels. The average price at which Oman sold its crude during the first seven months of 2023 remained 13.3% lower at $80.5 per barrel, compared to $92.8 per barrel achieved in the same period in 2022.

On Friday, the Oman crude price at the Dubai Mercantile Exchange increased by 1.4% to $86.39 per barrel (for October delivery).