Oil Prices Rise Amid Supply Concerns: What Investors and Businesses Should Prepare for in Oman
LONDON – Oil prices rose on Monday as traders grappled with concerns over potential disruptions to Russian supply due to escalating US sanctions and ongoing Ukrainian attacks targeting Russian energy infrastructure.
Brent crude futures increased by 29 cents, or 0.4%, reaching $68.02 as of 08:39 GMT, while West Texas Intermediate (WTI) crude futures gained 36 cents, or 0.6%, trading at $64.02.
Ole Hansen, head of commodity strategy at Saxo Bank, noted that the market remains uneasy as peace negotiations show little progress. “The market is looking for supply to exceed demand in the autumn months, but in the short term that’s being challenged by a potential geopolitical disruption,” Hansen said.
On Friday, US President Donald Trump reiterated his warning that sanctions on Russia would be imposed if there was no advancement toward a peaceful resolution in Ukraine within two weeks. Additionally, Trump indicated the possibility of imposing tariffs on India for its continued purchases of Russian oil.
US Vice President JD Vance stated that Russia has made “significant concessions” in pursuit of a negotiated settlement after more than three years of conflict. Meanwhile, Ukraine has intensified attacks on Russian energy sites, including a drone strike on Sunday that ignited a fire at the Ust-Luga fuel export terminal. Another fire, caused by a drone attack, continued to burn at Russia’s Novoshakhtinsk refinery on Sunday.
Counterbalancing these concerns are OPEC+ decisions to reverse production cuts, adding millions of barrels to the market. Eight members of the oil exporters’ group are scheduled to meet on September 7 to consider approving another increase in production.
Investor sentiment was bolstered by Federal Reserve Chair Jerome Powell’s indication of a possible interest rate cut at the US central bank’s September meeting. However, analysts warn that oil prices lack strong momentum as markets factor in the economic uncertainties prompted by Trump’s tariff threats.
— رویترز
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The recent climb in oil prices amid geopolitical tensions and US sanctions on Russia highlights significant volatility risks for businesses reliant on stable energy supplies in Oman. However, OPEC+’s planned production increases present an opportunity for Oman to leverage higher output and strengthen its market position amid fluctuating global supply-demand dynamics. Smart investors and entrepreneurs should closely monitor geopolitical developments and OPEC+ decisions to anticipate price shifts and strategically position themselves for both short-term risks and long-term gains.
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