Oman oil poised to touch $100 amid Ukraine crisis

Oman Tuesday 22/February/2022 21:41 PM
By: Times News Service
Oman oil poised to touch $100 amid Ukraine crisis

Muscat: Oman oil continues to rise and is just a few dollars short of the historic $100.
A statement issued by the Oman News Agency (ONA) said, “Today, the official price of Oman oil for April delivery reached $96 and 54 cents.”

Speaking exclusively to the Times of Oman, Khalfan Al Touqi, writer and economic analyst, said “the rise in oil prices is because of the tension on the Ukrainian-Russian border.” He pointed out that Russia’s oil and gas sector is little affected by this ever-growing tension, in fact, it stands to gain from the crisis. I do not expect a full-scale war between Russia and Ukraine. At its worse, it may be a limited military strike.

“If at all the situation escalates into a full-scale war, a third world war cannot be ruled out. That is because Europe is heavily dependent on Russian gas, oil and food. Ukraine too, on the other hand supplies food items to countries in Europe.”
He asserted that these tensions were escalated by Russia for some political and material gains. So, it will calm down sooner than later.”

Al Touqi said, “I do not think the price of a barrel of oil will rise above 100 dollars. Before it does, the two sides will de-escalate tension and the prices will return to 80-85 dollars.”

He added the rise in the price of oil has two sides-- the first is negative and the other positive. The rise will cause inflation in countries importing goods and that includes the Sultanate of Oman, since they import a majority of goods. The positive side is that the government will pay off the debts and the credit level of the Sultanate will rise.

Impact of sanctions
Dr. Mohammad Al Wardi also spoke to Times of Oman about the current oil prices: “Oil prices are approaching the $100 mark due to the escalating tension between Russia and Ukraine.”

Dr. Al Wardi stressed that if harsh sanctions are imposed on Russia, oil and gas prices will remain high for a long period, which will be in the interest of the oil producing countries in general and the Gulf countries, in particular.