Oman crude continued its rally on Tuesday with the prices reaching 62.29 per barrel for the January 2018 delivery.
According to Dubai Mercantile Exchange (DME), the price of Oman crude witnessed a rise of $1.66 per barrel from $60.63 in the trading on Monday.
“With this, the average price of Oman oil for November 2017 delivery has stabilised at $54.02 per barrel,” the DME said in a statement.
This is $3.63 per barrel higher than the October 2017 delivery.
Although a definite reason is not seen behind the latest increase, reports indicate any possible disruption to production in Saudi Arabia would likely have a huge impact on the global balance of supply and demand for the commodity.
Analysts and financial experts find the buoyancy in the crude prices as a boost to the country’s diversification plans.
“The rise will definitely help the country reduce deficit this year as the average price crossed the budgeted price of $45 per barrel,” said a financial expert with a local bank.
Although the country is planning to make gains in the non-oil sector from its economic diversification plan, key parameters still revolve around the dynamics of the oil price, he said.
SAMUEL KUTTY
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