Oman crude jumps to 3-month high near $67

February 18, 2019

Oman crude traded near a three month high on Monday at the Dubai Mercantile Exchange (DME) as output curbs by OPEC tightened global supply while trade talks between the US and China lifted global financial markets.

Oman crude price (April delivery) jumped 2.2 per cent to close at US$66.85 per barrel on Monday at the DME, Oman News Agency reported. Oman crude price traded at US$65.39 per barrel at the closing on Friday.

Average price of Oman crude for March delivery has stabilised at US$59.36 per barrel, which is US$2.03 per barrel higher than February delivery price.

Oil futures rose as much as 1.2 per cent in New York to the highest since November 20, after advancing 5.4 per cent last week. US President Donald Trump said talks with China were ‘very productive’ as his team returned from Beijing and readied for another round of discussions in Washington this week, raising hopes that a trade war between the world’s largest economies will ease.

Saudi Arabia and other members of the Organization of Petroleum Exporting Countries have made a strong start to production cuts, while US sanctions on Venezuela are adding further disruption.

“Saudi Arabia seems willing to do whatever is necessary to reach levels of US$80 a barrel, and judging by the price reaction they’re on track,” said Eugen Weinberg, head of commodities research at Commerzbank in Frankfurt. “Even rather bearish factors, like a stronger-than-expected rise in US oil production does not seem to derail the price recovery.”

West Texas Intermediate for March delivery rose as much as 68 cents to US$56.27 a barrel on the New York Mercantile Exchange and traded 27 cents higher at US$55.86 at 11:36am in London on Monday. Brent for April settlement was at US$66.12 a barrel, down 13 cents, on the London-based ICE Futures Europe exchange. It gained 6.7 per cent last week.

(With inputs from Bloomberg)

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