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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oman crude crosses $55 mark again

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In the ongoing recovery in lost prices, Oman crude crossed the very significant $55 per barrel mark at the Dubai Mercantile Exchange (DME) on the last day of trading on Friday.


The psychologically important increase comes close on the heels of the decision by Opec and its allies to considering extension of the production cut deal beyond the end of March when it is due to expire.


Opec, Russia and several other producers have cut output by about 1.8 million barrels per day (bpd) since the start of 2017, helping lift oil prices by 15 per cent in the past three months.


According to DME, Oman crude traded at $55.60 for November delivery on Friday, which was $0.42 above the previous day’s trading, and the highest in six months.


The average price of Oman crude oil due for delivery in October is estimated to be $50.39 per barrel.


Oman’s 2017 budget is based on an oil price assumption of $45 per barrel for the year.


According to experts, the rising prices bode well for the financial position especially in view of the forthcoming 2018 draft budget.


The budget deficit has already narrowed down to RO 2.6 billion in the first seven months of the


current year.


The uptick, which is expected to stay on the market, will help the Finance Ministry in preparing bases and assumptions on the budget estimates. The Sultanate achieved gross revenues growth to a little more than RO 4 billion in the first half of 2017.


The state budget seeks to achieve RO 8.7 billion revenues this year.


In 2016, the Omani crude oil prices averaged $40.1 per barrel compared with $56.5 in 2015 and $103.2 in 2014.


Oil and gas revenues accounted for 68.2 per cent of the government revenues and 57.9 per cent of total merchandise exports during the year.


Oman’s crude oil and condensates production in July 2017 stood at 29,977,000 barrels, a daily average of 967,000 barrels, according to the monthly report published by the Ministry of Oil and Gas.


Further, the total quantity of crude oil exported in July 2017 stood at 25,440,811 barrels, a daily average of 820,671 barrels, recording a rise of 1.97 per cent compared with June 2017, when calculating the daily average.


According to statistics of National Centre for Statistics and Information, exports totalled to 171.90 million barrels of crude between January and July 2017. Out of that amount, China imported 132.67 million barrels.


SAMUEL KUTTY


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