Monday 05 / May / 2025
Muscat: Oman oil price (March Delivery 2020) reached US$70.45, the Dubai Mercantile Exchange (DME) said on Monday (January 6, 2020).
In a statement, the DME said that the price of Oman oil increased by US$1.83 compared to the price of last Friday, when it traded at US$68.62.
However, a senior manager at an oil and gas company in Oman said this rise would only be temporary.
“I think the oil price will only stay at this level for a few days,” he told the Times of Oman. “We saw a similar reaction a few months ago, where the oil prices rose for a few days and then went back to what they were previously. It will hover around this price for maybe four or five days, and then it will drop back to what it was over the past few weeks.
Foreseeable future
“These kinds of changes to the oil prices, when they do happen, don’t usually last very long,” he added.
“I think that for the foreseeable future, therefore, we can expect the prices of Omani crude oil to stay at this level for some days, before dropping back to between $65 and $67 a barrel.”
The Oman crude futures contract pricing system used by the Dubai Mercantile Exchange is currently used by four territories.
Benchmark
A statement from DME said, “Bahrain is the fourth national oil company (NOC) to implement DME Oman in its pricing formula. The DME Oman crude oil benchmark is currently used to establish the price of crude oil in the Kingdom of Saudi Arabia, the Sultanate of Oman and the Emirate of Dubai.”
Switch over
Starting February 2020, the State of Kuwait will also switch over to the DME Oman pricing system. Another financial analyst in the Sultanate said, “The factors that govern oil prices are supply and demand.
“If there are more countries where this resource is in demand, or where they don’t have energy independence or a well-developed energy supply, then the demand for oil will go up, and these countries will need to pay more for oil.”
