Oman crude reaches $160.20 per barrel amid tensions

MUSCAT: The official price of Oman crude oil for May delivery rose to $160.20 per barrel on Monday, marking an increase of $2.26 compared to last Friday’s level of $157.94.
Despite the sharp daily gain, the average monthly price for March delivery stood at $62.17 per barrel, up marginally by 8 cents from February, indicating a comparatively moderate trend over the longer term.
International oil markets moved higher amid escalating geopolitical tensions in the Middle East, with concerns centring on potential disruptions to critical energy infrastructure and supply routes.
Brent crude futures climbed $1.57 to $113.76 per barrel, while US West Texas Intermediate (WTI) rose $3.09 to $101.32 per barrel, reflecting heightened volatility in early trading. The stronger rally in WTI also narrowed its discount to Brent, which had widened significantly in recent sessions.
Market sentiment remains highly sensitive to developments in the region. Analysts noted that while short-term price swings are being driven by rhetoric and threats, underlying supply dynamics will determine longer-term direction.
Tensions escalated after Iran’s Revolutionary Guards warned of potential strikes on Israeli power facilities and infrastructure linked to US bases in the region. The warning followed threats by US President Donald Trump to target Iran’s power sector if key shipping routes are not reopened.
Energy analysts cautioned that the situation points to further escalation, raising the risk of sustained supply disruptions. Observers noted that such developments could have severe implications for Gulf energy infrastructure.
The crisis has brought renewed attention to the strategic Strait of Hormuz, a vital artery for global energy trade that accounts for roughly 20 per cent of worldwide oil and liquefied natural gas flows.
Disruptions in the waterway, coupled with reported damage to energy facilities, have already begun to affect production and exports across the region.
Analysts estimate that between 7 million and 10 million barrels per day of oil supply could be at risk, underscoring the scale of potential impact on global markets.
In Iraq, authorities have declared force majeure on oilfields operated by foreign companies, while output at Basra Oil Company has reportedly dropped to 900,000 barrels per day, down sharply from 3.3 million bpd.
Meanwhile, market participants indicated that some Asian refiners, including those in India, are considering resuming purchases of Iranian crude, signalling possible shifts in trade flows as supply constraints tighten.
Global energy agencies have warned that the current crisis could surpass previous oil shocks in severity, highlighting the extent of uncertainty facing the market. — Agencies