Monday 16 / September / 2024
MUSCAT: Oman Crude’s April delivery prices rose to $30.79 per barrel, indicating a premium of more than $1 a barrel, compared with the Dubai Crude prices.
Oman Crude prices showed a big growth in premium over the benchmark Dubai Crude this year, mainly due to strong buying from Chinese refiners.
According to media reports quoting traders, the widening spread between Oman and Dubai’s crude oil grades underscored the market impact of a new breed of Chinese crude buyers, who are turning the screw on refiners across Asia, forcing many to change their refineries’ crude grades and others to pay up steep premiums.
However, the average price of Omani oil’s March delivery has stabilised at $27.4 per barrel.
Earlier this month, DME said the exchange had registered a new record for physical delivery volumes at 27.3 million barrels for the March loading, and four successive open interest records for its Oman Crude futures contract peaking at 36,109 contracts.
The exchange also saw traded volumes increase by 17 per cent year-on-year, amidst strong interest in DME Oman contracts from commercial and financial firms around the world.
Dr Mohammed bin Hamad Al Rumhy, Minister for Oil and Gas, said the country’s oil production this year would be targeted at around 990,000 barrels per day (bpd). The country’s crude oil production stood at 358.1 million barrels (equivalent to 981,000 bpd), against 344.37 million barrels (equivalent to 943,500 bpd) in the previous year.
However, the average price of Oman Crude plunged by 45.3 per cent to $56.6 per barrel last year, compared with the previous year’s level of $103 a barrel. – With inputs from agencies
