Muscat: The price of Oman oil on Dubai Mercantile Exchange (DME), for December 2021 delivery stood at $82.09 on Tuesday.
Khalfan Al Touqi, an economic analyst confirmed exclusively to the Time of Oman that it is for the first time since its historic decline in 2014 that Oman oil set a new record price.
“There are expectations from economic analysts that oil prices will rise more for several reasons, including that the COVID-19 immunisation rates in the world have reached large proportions, and thus life is returning to its previous era. As a result, people will consume a lot, whether it is eating or buying or travelling. If people practice various activities of life naturally, the consumption of oil and gas will increase as well,” Al Touqi said.
“Also, the return of factories to work normally as they were before COVID-19 will lead to a rise in the price of oil,” Al Touqi added.
Khalfan Al Touqi confirmed that a second reason is population growth, and if it increases, consumption will increase, and thus oil prices will rise. The third reason is that we are approaching the winter season. As such people will need additional energy for heating because of the harsh cold, especially in European countries.
“The fourth reason is the OPEC agreement, as the supply is very limited compared to demand. If the supply is too much, the price of oil will gradually decrease,” the economic analyst said.
In July 2021, the OPEC+ alliance had said that there is an agreement to gradually increase oil production starting from August 2021.