Oman Oil Price Surge: Implications for Investors and Entrepreneurs in the Energy Sector
MUSCAT: The official price of Oman crude oil for February delivery reached $61.47 on Monday, marking an increase of $1.31 from last Friday’s price of $60.16.
For December delivery, the average monthly price of Oman crude oil stood at $65.04 per barrel, reflecting a decrease of $5.04 compared to the November delivery price.
International oil prices also experienced a rise on Monday, following reports that the U.S. intercepted an oil tanker in international waters near Venezuela, raising concerns about potential supply disruptions. Brent crude futures gained 52 cents, or 0.86%, bringing the price to $60.99 per barrel by 0918 GMT. Meanwhile, U.S. West Texas Intermediate crude increased by 50 cents, or 0.88%, reaching $57.02.
"The market is becoming aware of the Trump administration’s hardline stance on Venezuelan oil trade," commented June Goh, a senior oil market analyst at Sparta Commodities. Venezuelan crude represents approximately 1% of global oil supply.
Goh noted that oil prices have been bolstered by this geopolitical development, along with ongoing tensions between Russia and Ukraine, in a fundamentally bearish market.
The U.S. Coast Guard is currently pursuing an oil tanker in international waters off the coast of Venezuela, which, if successful, would mark the second operation over the weekend and the third in less than two weeks, according to officials.
The rebound in oil prices can be attributed to U.S. President Donald Trump’s announcement of a "total and complete" blockade on sanctioned Venezuelan oil tankers, coupled with reports of a Ukrainian drone strike against a Russian shadow fleet vessel in the Mediterranean, as highlighted by IG analyst Tony Sycamore.
However, it’s worth noting that both Brent and WTI benchmarks fell by approximately 1% last week. — Agencies
Special Analysis by Omanet | Navigate Oman’s Market
The recent increase in Oman crude oil prices to $61.47 signals a potential rebound for businesses reliant on the oil sector, presenting opportunities for growth amid global market volatility. However, the geopolitical tensions surrounding Venezuelan oil trade could lead to supply disruptions, posing risks that investors must navigate carefully. Smart investors should consider diversifying their portfolios and staying informed about international developments to capitalize on potential fluctuations in oil prices.
