Oman crude price crosses $82, first time in four years

Energy Tuesday 25/September/2018 20:46 PM
By: Times News Service
Oman crude price crosses $82, first time in four years

Muscat: The price of Omani crude oil (futures) reached a new high on Tuesday, crossing $82 per barrel for the first time in four years.
According to the Dubai Mercantile Exchange (DME), the price of oil for Oman’s November 2018 delivery rose to $82.53 per barrel, compared to $80.02 the day before. The recorded rise was $2.51 in a single day, leading to the largest price per barrel since 2015.
The average price of Oman crude oil due for delivery in September is $73.17 per barrel, down by 44 cents compared to August.
This comes in the backdrop of similar developments the day before. On Monday, the price of one barrel of Omani oil rose to $80.02, up from $78.04 the day before. The recorded rise was $1.98 in a single day, the biggest spike until Tuesday.
Anchan C K, Managing Director, World Wide Business House LLC, a business advisory firm, said that the rise in oil prices would influence the economy and the consumer.
“On the one hand, higher prices of oil would mean that the government gets greater returns for its crude exports. This is of course, good news for all oil-exporting countries, including Oman.”
Consumer price index
“On the other hand, the increased prices of fuel would translate to increased costs of transportation, logistics and what have you. This rising cost of operation would be passed on to the consumer. One has to watch the consumer price index very closely. Prices of all commodities will go up. It is a global economy and this is expected. Especially considering that Oman imports many consumer goods. Their increased prices will be quite visible,” he said.
“I realise that the price is $82 per barrel, but is likely to stabilise around $75 in two or three weeks and stay there for at least two months. Even this is a good price for crude and will help the economy,” he added.