Oman crude jumped nearly 4 per cent to reach $96.51 per barrel in trading on the Dubai Mercantile Exchange (DME) on Tuesday, tracking seven-year highs witnessed by leading international benchmarks amid soaring tensions over the Ukraine-Russia crisis.
Oman’s crude oil futures contract gained $4.27 per barrel on Tuesday, up from $92.24 per barrel on Monday, to reach peaks last seen in 2014. The spike came as Brent crude, the global benchmark, climbed to its highest level since September 2014 when it reached a peak just shy of the $100 per barrel. It climbed 2.4 per cent to hit $99.50 per barrel.
According to the Dubai Mercantile Exchange, benchmark crude oil prices have largely been on a one-way path in recent weeks as the sharp rally lifted oil markets to levels not seen since October of 2014. The Middle East medium sour Oman crude trading on the Exchange has surged by over $20 per barrel since December 20 to stand at a seven-year high of $91.38 per barrel on February 7, or a gain of 30 per cent.
DME Oman futures have also gained against the Dubai physical market since the start of the year, with spread widening out to around $0.40 per barrel in early February, having traded at around parity for most of 2021.
Meanwhile, other benchmarks too posted significant gains as news emerged of Russian troops entering the breakaway regions of Ukraine. US West Texas Intermediate (WTI) crude jumped by $2.92, or 3.2 per cent, to $93.87. It also reached a seven-year high on Tuesday as it peaked at $96.
