The oil and gas sector has experienced a notable decline in oil production since 2023, as detailed in a recent report released by the National Centre for Statistics and Information (NCSI). The decline is primarily attributable to production curbs agreed by Oman in support of efforts by the Opec+ Alliance to buoy international oil prices.
By the end of May 2024, total oil production had fallen to 151.401 million barrels, down by 5.5 per cent from 160.145 million barrels recorded by the end of May 2023. The daily average production followed the same downward trend, averaging 996.1 thousand barrels per day in May 2024, a reduction of 6.1 per cent from 1,060.6 thousand barrels per day in May 2023.
Despite the decrease in production, the average prices per barrel of oil (US$/BBL) remained relatively stable over the period.
Contrary to the production figures, total exports saw a slight increase. By the end of May 2024, exports totaled 129.031 million barrels, marginally higher than the 128.070 million barrels exported by the end of May 2023. This increase is primarily driven by a surge in exports to China.
Exports to China rose significantly, reaching 125.041 million barrels by the end of May 2024, compared to 117.120 million barrels during the same period in 2023. This surge underscores China’s growing demand for Omani oil, reflecting a positive trend in the bilateral trade relations between the two countries.
In contrast, exports to Japan have decreased. The figures show a decline to 2000.7 thousand barrels by the end of May 2024, from 4,783.5 thousand barrels in May 2023.
Oman Observer