Oil price rally in Oman gathers momentum to exceed $ 71 a barrel
Muscat: The rise in Oman’s oil prices continued on Wednesday on the Dubai Mercantile Exchange (DME) to reach $ 71.38. This includes an increase of $ 1.78 from Tuesday’s price, which was $ 69.60.
“The average price of Oman oil (June 2021 delivery) has stabilized at $ 63.10, which is $ 1.33 a barrel lower than the May 2021 delivery,” the DME said on Wednesday.
DME is the leading international energy futures and commodities exchange in the Middle East and the first energy-focused commodities exchange east of Suez and is home to the world’s third largest crude benchmark.
DME was launched in June 2007 with the aim of bringing fair and transparent price discovery and effective risk management to East Suez.
The DME lists the Oman Crude Oil Futures (DME Oman) as its flagship contract, providing the most fair and transparent crude oil benchmark for the region. DME Oman is the explicit and unique benchmark for official Oman and Dubai crude oil (OSP) selling prices – historically established markers for crude oil exports from the Middle East to Asia.
Global oil prices also saw a price increase with Brent crude futures up 32 cents to $ 72.42 per barrel. US West Texas Intermediate (WTI) crude futures also rose 18 cents to trade at $ 70.23 a barrel early in Singapore.
On June 8, the US Energy Information Administration forecasted growth in fuel consumption this year in the United States, the world’s largest user of oil, to be 1.49 million barrels per day (bpd), up from a previous forecast of 1.39 million bpd.
Oil prices rebounded to their highest levels in about two years, aided by supply restrictions by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
Earlier on Tuesday, at the 17th OPEC and non-OPEC ministerial meeting in Vienna, Austria, the group noted continued strengthening of market fundamentals, with demand for oil showing clear signs. improvement with an economic recovery observed in most parts of the world in the form of vaccination programs. accelerated.
The meeting commended the positive performance of participating countries in the Declaration of Cooperation (DoC). Overall compliance with production adjustments was 114 percent in April (including Mexico), reinforcing the trend of high compliance by participating countries.
Taking into account the current fundamentals of the oil market and the consensus on its outlook, the meeting reaffirmed the current commitment of DoC participating countries to a stable market for the mutual benefit of producing countries; efficient, economical and secure supply to consumers; and a fair return on invested capital.
The meeting also reiterated the critical importance of adhering to full compliance and taking advantage of the extension of the compensation period until the end of September 2021, as requested by some underperforming countries.
Compensation plans should be submitted in accordance with the declaration of the 15th OPEC and non-OPEC ministerial meeting.
The 18th OPEC and non-OPEC ministerial meeting is scheduled for July 1, 2021.