Increase in Oman Oil Prices, Approaching $90 per Barrel

Oman oil climbed to $89.03 on Thursday, according to the Dubai Mercantile Exchange (DME). This marked an increase of $1.17 from Wednesday's price of $87.86. The mean cost of Oman oil has steadied at $74.78 per barrel, which is 16 cents lower per barrel compared to the July 2023 delivery.

Consequently, global and Omani oil prices could remain on an uptrend over the short to medium term. However, they might face fluctuations due to evolving economic circumstances, according to Denys Peleshok, Head of Asia at CPT Markets.

“The uncertainty around how monetary policies in the major economic areas could change and how they might impact local economies could also remain a source of risks over the medium to long term,” he further added.

Both oil producers have stated that they would extend their production cuts to include September which could result in tighter supply over the medium term and could maintain and widen these measures if necessary. “As a result, we could see oil prices continuing their ascension and with them, the Omani oil benchmark potentially pushing towards the 90 dollar mark over the short term,” he added.