Oman ramps up condensates output to new high

Oman continued to boost condensate production in July to a new record of 221,000 b/d, according to the oil ministry.

The country has been able to ramp up production because condensate is excluded from Oman's Opec+ output cut obligations, and the country has set new records over the past four months. Production in July was up by 4.9pc from 211,000 b/d in June. It averaged just 145,000 b/d in the 12 months before that.

Oman's total crude and condensate output was approximately 892,000 b/d, down marginally from June. Crude production dropped to 671,000 b/d as Oman pushed for more than 100pc compliance with its Opec+ commitment. It pledged to cap its crude output at 682,000 b/d in May, June and July, and then at 722,000 b/d from August to December. It produced just below its quota in May, but exceeded the cap in June with 683,600 b/d.

The Opec+ alliance, which brings together Opec's 13 members with 10 non-Opec producers led by Russia, agreed to take a combined 9.7mn b/d off the market in May and June and 9.6mn b/d off in July. The cuts moderate to 7.7mn b/d from this month and then to 5.8mn b/d from January 2021 to April 2022.

Oman exported 778,000 b/d of crude and condensate in June, down by 13pc from 899,000 b/d in June. A breakdown of exports by destination was not available, but China is traditionally by far the country's biggest customer.

By Adal Mirza