Oman crude prices on Monday surged by 4.5 per cent to cross US$62-per barrel mark after US oil prices rallied past US$60 a barrel for the first time in more than a year.
The price of Oman crude contract (for April delivery) at the Dubai Mercantile Exchange (DME) closed at US$62.54 per barrel on Monday, recording a rise of US$2.68 from Friday’s closing price at US$59.86 per barrel.
US oil benchmark West Texas Intermediate (WTI) surged 2.2 per cent to US$60.77 per barrel in Asian trade on Monday, its highest since January last year before the oil market collapsed as the coronavirus pandemic battered demand. US oil price were also supported by concerns about supplies as Texas is hit by a severe cold snap that traders warn could slash output.
Brent crude broke the US$60 marker last week, while both contracts have rallied more than 20 per cent since the start of the year.
Oil prices have been improving for months on the back of optimism over an expected recovery in the global economy, President Joe Biden’s stimulus package, and hopes that slowing virus infection rates and vaccine rollouts will see a surge in demand as life gradually returns to a semblance of normality.
A decision by OPEC and other major producers to slash output last spring has also provided crucial support, particularly after prices crashed into negative territory in the early days of the pandemic. Saudi Arabia’s announcement last month that it would reduce production even further in February and March added to the price gains.
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