Oman Output Cut Tempered By Export Surge

Oman has cut deeper than pledged production cuts, but ongoing development plans mean that output is set to soar in the second half of the year.

Oman more than-adhered to its oil production cut pledge in January, but refinery maintenance means that exports rose regardless. Producing companies are boosting production capacity, but, so long as Oman complies with the pledge made to Opec on 10 December to cap first half 2017 output at 970,094 b/d, its full year 1mn b/d target will be difficult to hit.

Crude and condensate production fell to 966,000 b/d in January the lowest level in 16 months and 4,000 b/d below planned average H1 2017 levels ( MEES, 20 January ).

But Oman’s contribution to reducing the global crude oil supply glut was mitigated by maintenance work undertaken at the 116,000 b/d Sohar refinery (see p5 ). Crude and condensate exports rose 42,000 b/d last month to 860,000 b/d as a result. While this is below the 2016 average of 880,000 b/d, it certainly tempers the impact of the production cut on efforts to rebalance crude markets (see p12 ). (CONTINUED - 1223 WORDS)


chart Oman Cuts Oil* Output (‘000 B/D) To Below Targeted Levels...
chart ...But Exports Rise Due To To Sohar Refinery Maintenance
chart Oman 2016 Oil Export Revenue Falls 25% Year-On-Year ($Bn)