MUSCAT: Oman oil price (February delivery 2024) yesterday reached $78.98/barrel, comprising a rise by $2.21 from the price on Tuesday, which stood at $76.77.
The average price of Oman oil (December delivery 2023) has stabilised at $89.79 per barrel, thus $2.98 per barrel lower than November delivery 2023.
Meanwhile, global oil benchmark Brent topped $80 a barrel on Wednesday amid jitters over global trade disruption and geopolitical tensions in the Middle East following attacks on ships by militant forces in the Red Sea.
Brent crude futures rose 89 cents, or 1.1%, at $80.17 a barrel by 1101 GMT, while US West Texas Intermediate crude climbed 93 cents, or 1.3%, to $74.92 a barrel.
The benchmarks closed up more than 1% on Tuesday as some companies rerouted vessels, with longer voyages increasing the cost of transport and insurance.
On Wednesday, Greece advised commercial vessels sailing in the Red Sea and the Gulf of Aden to avoid Yemeni waters. Greek ship-owners control about 20% of the world's commercial vessels in terms of carrying capacity.
Washington on Tuesday launched a task force to safeguard commerce in the region.
"Thus far, the US-led naval mission to mitigate militant attacks has failed to ease broad concerns of safe passage through the Red Sea, with major maritime carriers still choosing to steer clear amid the tensions," said Yeap Jun Rong, market strategist at IG.
About 12% of world shipping traffic passes up the Red Sea and through the Suez Canal. Although oil supply has been re-aligned, no shortages have yet emerged, analysts said.
"As long as production is not threatened the market will eventually adjust to changing supply routes," said Saxo Bank analyst Ole Hansen.
"It is not a far-fetched thought to attribute the present advance in prices as much to rate cut expectations, falling bond yields and dollar and healthy equity markets as to the geopolitical temperature," said Tamas Varga of oil broker PVM. — ONA and Reuters
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