MUSCAT: Oman's crude oil and condensate production rose to more than 1 million barrels per day in July for the first time in its history, the Oil and Gas Ministry said in its monthly report.
The sultanate has been ramping up oil production despite a global supply glut that has hit oil prices, with the Gulf Arab country looking to compensates for the drop in its oil revenue.
"The average daily production rate during July exceeded the barrier of 1 million barrels for the first time in the history of Oman's oil industry," the ministry said in the report published on its website.
Total oil output was up 0.5 percent from June, producing 894,156 bpd of crude oil and 106,926 bpd of condensate.
Salim Nasser Al-Aufi, undersecretary at the Ministry of Oil and Gas, said the rise in output was mainly attributable to a drop in planned maintenance work and that he does not expect to reach the same level of production in August.
Oman's July oil exports, however, fell by 12.6 percent month on month, the ministry said, as its refineries used higher volumes of crude.
The month's crude exports reached 796,977 bpd, with all shipments going to the Asian market, while supplying 163,062 bpd to domestic refiner Oman Oil Refineries and Petroleum Industries Company.
China accounted for nearly 70 percent of total Omani crude exports in July, the ministry's report said, with Japan taking 15 percent.
Though a small non-OPEC oil producer, Oman's crude oil forms part of the benchmark price for millions of barrels per day of exports from Middle East producers to Asia.
Oman oil output surges to record 1mpd in July
Oman oil output surges to record 1mpd in July
European gas prices soar almost 50% as Iran conflict halts Qatar LNG output
- Analysts warn prolonged disruption could push prices higher
- Some shipments of oil, LNG through Strait of Hormuz suspended
- Benchmark Asian LNG price up almost 39 percent
LONDON: Benchmark Dutch and British wholesale gas prices soared by almost 50 percent on Monday, after major liquefied natural gas exporter Qatar Energy said it had halted production due to attacks in the Middle East.
Qatar, soon to cement its role as the world’s second largest LNG exporter after the US, plays a major role in balancing both Asian and European markets’ demand of LNG.
Most tanker owners, oil majors and trading houses have suspended crude oil, fuel and liquefied natural gas shipments via the Strait of Hormuz, trade sources said, after Tehran warned ships against moving through the waterway.
Europe has increased imports of LNG over the past few years as it seeks to phase out Russian gas following Russia’s invasion of Ukraine.
Around 20 percent of the world’s LNG transits through the Strait of Hormuz and a prolonged suspension or full closure would increase global competition for other sources of the gas, driving up prices internationally.
“Disruptions to LNG flows would reignite competition between Asia and Europe for available cargoes,” said Massimo Di Odoardo, vice president, gas and LNG research at Wood Mackenzie.
The Dutch front-month contract at the TTF hub, seen as a benchmark price for Europe, was up €14.56 at €46.52 per megawatt hour, or around $15.92/mmBtu, by 12:55 p.m. GMT, ICE data showed.
Prices were already some 25 percent higher earlier in the day but extended gains after QatarEnergy’s production halt.
Benchmark Asian LNG prices jumped almost 39 percent on Monday morning with the S&P Global Energy Japan-Korea-Marker, widely used as an Asian LNG benchmark, at $15.068 per million British thermal units, Platts data showed.
“If LNG/gas markets start to price in an extended period of losses to Qatari LNG supply, TTF could potentially spike to 80-100 euros/MWh ($28-35/mmBtu),” Warren Patterson, head of commodities strategy at ING, said. The British April contract was up 40.83 pence at 119.40 pence per therm, ICE data showed.
Europe is also relying on LNG imports to help fill its gas storage sites which have been depleted over the winter and are currently around 30 percent full, the latest data from Gas Infrastructure Europe showed. In the European carbon market, the benchmark contract was down €1.10 at €69.17 a tonne
