Oman crude prices surged more than 5 per cent on Tuesday to $100.85 per barrel as international oil markets weighed a coordinated international release of crude inventories against Russian supply disruptions in the wake of Moscow’s invasion of Ukraine.
According to data from the Dubai Mercantile Exchange (DME), the price of Oman crude rose by $4.81 to close at $100.85 a barrel, the highest level since August 2014.
The monthly average price of Omani crude oil for March delivery amounted to $83.62 per barrel, an increase of $10.48 compared to February’s delivery price.
Prices of international crude benchmarks too hit multi-year highs. May Brent crude futures were up $4.58, or 4.67 per cent, to $102.55 a barrel after hitting an intraday high of $104.60. The benchmark touched a seven-year high of $105.79 after the invasion began last week. US West Texas Intermediate (WTI) April crude futures were up $4.14, or 4.33 per cent, at $99.86 a barrel after hitting its highest level since July 2014 at $101.53.
According to Reuters, buyers of Russian oil are facing difficulty over payments and vessel availability due to sanctions with BP cancelling fuel oil loadings from a Russian Black Sea port.
Amid concerns of large-scale supply disruptions, the United States and allies began discussing a coordinated release of crude stocks – a move estimated at 60 million to 70 million barrels, media outlets reported.
“OPEC will likely stick to its original plan of a monthly 400,000 bpd increase, which will not alleviate fears,” Tamas Varga, analyst at PVM Oil Associates, said.
The Organization of the Petroleum Exporting Countries and other producers – including Russia – will meet on Wednesday.
Meanwhile, members of the International Energy Agency (IEA) began an extraordinary ministerial meeting on Tuesday which could lead to a coordinated oil stocks release to help cool off oil prices.
Russia exports some 4 million to 5 million barrels per day of crude oil, and 2 million to 3 million barrels per day of refined products (With inputs from Reuters).
