Oman crude rises to $106.83 per barrel

MUSCAT: Oman’s official oil price for December delivery rose $1.07 to $106.83 a barrel on Monday, even as international benchmarks fell on profit-taking after reaching multi-month highs.
The Oman contract increased from Friday’s $105.76 a barrel. Separately, the monthly average price for October delivery stood at $87.84 a barrel, up $11.48 from September delivery.
Brent crude futures fell $1.34, or 1.22 per cent, to $108.52 a barrel by 1002 GMT, after settling on Friday at their highest since May 19. US West Texas Intermediate crude slipped 13 cents, or 0.13 per cent, to $101.28, following its strongest close since September 17.
Investors remained focused on supply disruptions in the Middle East and developments affecting Russian exports.
“Ongoing strikes on vessels crossing the Strait of Hormuz and flows remaining below pre-conflict levels continue to provide support,” UBS analyst Giovanni Staunovo said.
An oil tanker caught fire and exploded after striking a naval mine in the southern Strait of Hormuz on Sunday, Iranian media reported, citing Iran’s Islamic Revolutionary Guard Corps.
Gulf crude flows fell to a seven-day average of about 8.5 million barrels per day last week, from more than 20 million bpd the previous week, analytics firm Kpler said in a note on Friday. It reported at least 10 confirmed incidents involving commercial vessels during the week.
SEB analyst Bjarne Schieldrop warned that recent increases in exports through the strait might not be sustained, citing the risk of further attacks ahead of the November 3 US midterm elections.
Meanwhile, US President Donald Trump signed an executive order on Friday waiving some sanctions and tariffs related to Russian exports.
The move followed an agreement with Russian President Vladimir Putin to supply diesel to the United States and other countries, starting at about 2.3 million barrels this month and rising to about 7.6 million barrels a month.
US Secretary of State Marco Rubio said Trump would take up to 60 days to assess the effects of the sanctions and tariffs on the global economy.
Priyanka Sachdeva, head of market insight at Phillip Nova, said the waiver could help contain prices but would do little to resolve physical supply disruptions in the Strait of Hormuz. — Agencies