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The monthly average price of Omani crude for January delivery was recorded at $72.46 per barrel, marking a $2.36 decrease compared to December’s delivery price MUSCAT: The official price of Oman oil for March delivery settled at $81.36 per barrel on Monday, reflecting a 40-cent drop from last Friday’s price of $81.76. The monthly average price of Omani crude for January delivery was recorded at $72.46 per barrel, marking a $2.36 decrease compared to December’s delivery price. On the international stage, oil prices retreated as the United States reversed its initial threats of sanctions against Colombia, easing immediate concerns over supply disruptions. However, market uncertainty persists amid geopolitical tensions and policy shifts. Brent crude futures fell by 60 cents (0.8%) to $77.29 per barrel by 1300 GMT, while US West Texas Intermediate (WTI) crude slipped by 57 cents (0.8%) to $74.42. Both benchmarks experienced fluctuations during early trading hours. The US reversal came after Colombia agreed to accept deported migrants from the United States, a decision that calmed concerns over crude supply from Colombia, which sends approximately 41% of its seaborne oil exports to the US, according to data from Kpler, an analytics firm. Despite this resolution, the oil market remains tense. “There is broad-based negative sentiment in the market. Even if the sanctions didn’t happen, this creates nervousness about Trump’s tactics,” said Bjarne Schieldrop, Chief Commodities Analyst at SEB. Schieldrop also noted that the oil market remains “surprisingly tight,” with time spreads indicating rising prices for quicker crude deliveries. Adding to the volatility, former US President Donald Trump reiterated his call for the Organization of the Petroleum Exporting Countries (OPEC) to reduce oil prices to undermine Russia’s economy and pressure an end to the Ukraine war. “One way to stop it quickly is for OPEC to stop making so much money and drop the price of oil. That war will stop right away,” Trump stated. Trump also hinted at potential taxes, tariffs, and sanctions against Russia and its allies if no resolution is reached, while Russian President Vladimir Putin expressed readiness to meet with Trump to discuss the Ukraine conflict and energy markets. “They are positioning for negotiations, and this contributes to volatility in the oil markets,” commented John Driscoll of Singapore-based consultancy JTD Energy. |
