Oman crude tops $60 per barrel after cut in output

The price of Oman oil rose above $60 a barrel when it increased by 76 cents to reach the highest it has been in a year’s time.

The price of Oman crude on February 9 stood at $60.50, according to the Dubai Mercantile Exchange, after hovering around the $58 mark for the last few days.

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Speaking exclusively to Times of Oman, Ali bin Abdullah Al Riyami, Director General of Oil and Gas Marketing at the Ministry of Energy and Minerals, said: “Today, the price of Omani oil has reached $60.50 a barrel. This rise shows improved expectations for the recovery of world economy and global demand for oil, particularly in Asia.”

He said that the efforts made by the Organisation of Petroleum Exporting Countries and its allies to cut production has also led to recovery in oil prices, especially after Saudi Arabia announced that it has decided for additional voluntary reduction of one million barrels per day during February and March 2021.”

As it is known, every increase in the price of a barrel will contribute to the government’s oil revenues, which will be reflected in the rebound of the market and the recovery of Omani economy, he added.

It is worth noting that the price of Oman oil in December 2019 reached $ 60.26 and for your information, in the same year, the price in August reached $ 69.99,” he added.

The average price of Oman oil scheduled for delivery in February 2021 stabilised at $50, a good $6.17 higher than the average price of oil scheduled for January.

The production of Oman crude has risen, according to figures from the Ministry of Energy and Minerals. Production in the country stood at 730,459 barrels a day in January 2021.

Source: Times Of Oman