Oman crude rallies to break $70 mark

MUSCAT, APRIL 8 – Oman crude rallied to a new high with the prices breaching the $70 per barrel mark for June delivery, giving a potential boost to the county’s fiscal outlook. The benchmark crude traded at $70.49 per barrel on the Dubai Mercantile Exchange (DME) on Monday, the highest since
the presentation of the Sultanate’s general budget. The average price of Oman Oil Future Contract for April delivery 2019 has stabilised at $64.48, which is $5.12 per barrel higher than March delivery 2019.
According to a DME statement, the price rose $1.54 from Friday, when the price stood at $68.95.
Ongoing production cuts by Organisation of the Petroleum Exporting Countries (Opec) had bolstered prices in recent months.
Last week, Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, expressed his optimism that oil prices ranging between $65 and $75 would continue till the end of this year. Already boosted by fresh signs of Opec production cuts, prices of crude were further buoyed by a
monthly US employment report that topped estimates.
Reports indicate that an escalating battle between government and rebel forces in Libya added to a wealth of factors driving up oil prices in addition to economic data from US and China.
Brent crude was $70.34 per barrel, up 1.4 per cent from Friday’s close, while West Texas Intermediate (WTI) was at $63.08, 1.6 per cent higher than Friday.
Brent and WTI were respectively trading 2.3 per cent and 2.8 per cent higher than their close a week ago.
Oman’s production of crude oil and condensates amounted to 30.06 million barrels, of which 26.63 million barrels of crude oil and 3.45 million of oil condensates.
The average daily production of oil amounted to 970,300 barrels, with daily rate of 0.3 per cent.