Muscat: Oman crude for April delivery was traded at $34.30 per barrel on Tuesday, an increase of $1.10 from Monday’s price of $33.30.
On Friday, Oman crude had traded for $49 at Dubai Mercantile Exchange.
Oil prices bounced 8 percent on Tuesday from the biggest one-day rout in nearly 30 years, as investors eyed the possibility of economic stimulus amid a price war between Russia and Saudi Arabia and as new virus cases slowed in China.
Brent crude futures rose by $2.85, or 8.3 percent, to $37.21 a barrel by 6:05 GMT on Monday.
Joice Mathew, head of research, United Securities in Muscat, told the Observer on Monday, “We might see the volatility continuing for the rest of this week, and maybe next. After that, traders would reassess the supply-demand dynamics, and prices could stabilize within a couple of months. The uncertainties and panic created by coronavirus will also play a major role in heightened volatility during the next couple of months. Despite the demand doldrums and inventory glut in the short term, our estimates suggest the prices recovering to levels higher than $40 in the second half of the year.”
Crude was also supported by hopes for a settlement to the price war and potential US output cuts, although analysts warned gains may be temporary as oil demand continues to be hit by the economic impact of the coronavirus outbreak which has spread beyond China and caused Italy to be under lockdown.
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