Friday, March 29, 2024 | Ramadan 18, 1445 H
clear sky
weather
OMAN
25°C / 25°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oman crude gains $5.31 on single day trade

Oil-Up
Oil-Up
minus
plus

MUSCAT, SEPT 16 - The price of Oman crude oil shot up by more than $5 per barrel, according to a statement by Dubai Mercantile Exchange (DME).


The DME statement said that the price of Oman oil on Monday rose $5.31 from the price of last Friday, which was $59.25. The price for November Oman crude oil futures contract is set at $64.56, the statement added. The average price of Oman oil for October delivery stood at $59.68, thus $4.20 per barrel lower than September delivery.


Meanwhile, Europe’s benchmark Brent crude surged by 20 per cent and US counterpart WTI by 15 per cent as commodities trading got under way and after President Donald Trump warned that the US was “locked and loaded” to respond to the attacks on Saudi oil facilities. The price surges weighed across world stock markets on fears that a sustained higher cost of crude could impact already weak global economic growth. Experts find Monday’s gain as the biggest daily gain since the 1991 Gulf War after weekend drone attacks on two Saudi oil facilities halved output in the world’s top crude exporter, fuelling fresh geopolitical and growth fears.


“Growing tensions in the Middle East are another headwind for the global economy in already uncertain times, and a full-blown conflict could trigger another leg in the global downturn,” said Jennifer McKeown, head of Global Economics at Capital Economics.


However, share prices of energy majors jumped, with traders seeing higher profits down the line for the likes of BP and Shell.


In foreign exchange, the dollar was down against yen and up against euro, while the pound slid, with the EU saying that Britain had no viable Brexit proposals after Prime Minister Boris Johnson held Brexit deal talks with EU chief Jean-Claude Juncker.


Gold, which along with the yen is seen as a haven in times of geopolitical and economic unrest, rose. Saudi Arabia was on Monday expected to restore at least a third of the production lost to the attacks, according to experts and reports.


Saudi Energy Minister Prince Abdulaziz bin Salman said the kingdom would use its vast inventories to partially compensate for the lost production and the US also authorised the release of its reserves. The Saturday strikes on national energy giant Aramco’s Abqaiq processing plant and Khurais oil field knocked 5.7 million barrels per day off production, more than half of the Opec kingpin’s output.


SHARE ARTICLE
arrow up
home icon