Muscat: The Oman crude was traded at Dubai Mercantile Exchange for $96.51 (April 2022 delivery).
The Oman crude witnessed a rise of $4. 27 cents compared to Monday’s $92.24.
This is the highest price for Oman’s crude since September 2014.
According to analysts, prices will go higher and remain there for an extended period of time.
This will also fuel higher inflation and threaten to interfere with the recovery of the global economy from the fallout of the pandemic”
Hopes of an Iran nuclear deal, which could see Tehran resume global oil exports, did not temper the gains.
The jump in oil is compounding worries about inflation around the world, with the Federal Reserve coming under intense pressure to tighten monetary policy to prevent prices from running out of control.
Hopes of an Iran nuclear deal did unable to temper the gains.
The jump in oil is compounding worries about inflation around the world, with the Federal Reserve coming under intense pressure to tighten monetary policy to prevent prices from running out of control.
How do you think rising oil prices due to the Ukraine crisis will affect the Sultanate of Oman and the economy?
— Oman Observer (@OmanObserver) February 22, 2022
The Sultanate of Oman’s budget is based on $50 per barrel.
Prices are at the highest level since 2014, which could make the world’s inflation problem even worse’’, according to experts.
Oil prices may have a limited impact on transportation costs in the Sultanate of Oman as the government has ordered a cap on fuel prices at October 2021 rates until the end of 2022. The government would bear the cost difference that may result from any potential increase in oil prices. But according to experts, energy prices have been affecting inflation rates due to high transportation costs in many countries, which are then transferred to goods that are imported from these markets.
