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Oman crude trades above $95 per barrel

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Muscat - The official price of Oman’s crude for November delivery crossed $95 per barrel for the second consecutive day to close at $95.20.


On Friday, the Oman crude closed at a three-month high of $95.51


It may be noted that the monthly average price of Omani crude oil for delivery in September was $80.54 per barrel, an increase of $5.76 compared to prices for August delivery.


International crude oil prices continued to trade higher on Monday amid supply concerns due to the ongoing output cuts by Saudi Arabia and Russia.


International Energy Agency (IEA) projected that demand will eclipse supply by 1.2 million barrels per day (mpbd) on average during the second half of the year, while an OPEC report showed that global oil markets face a supply shortfall of 3.3 mbpd next quarter, potentially the biggest deficit in more than a decade.


Crude oil prices are showing strength since OPEC+ decided to extend its output cuts until the end of 2023.


Some analysts believe crude prices could hit the $100 a barrel milestone before year-end. China's stimulus policy, resilient US economic data, and ongoing output cuts from Saudi Arabia are among the bullish factors supporting the oil market's upside rally.


Oman's Budget is based on an oil price of $55/bbl compared to $50/bbl in the Tenth Five-Year Plan and the 2022 budget.


The average price of oil in 2022 was $94/bbl. Oil and gas revenues are budgeted at RO 6.7 billion, including oil revenues of RO 5.3 billion and gas revenues of RO 1.4 billion.


Oman posted a budget surplus of $1.71 billion at the end of the first half of 2023, compared with RO784 million in the same period in 2022.


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