Why Oman crude oil price plunged to five-month low Share lines Muscat: Oman’s crude oil price plunged to its lowest level in five months, as rising oil supply from the United States (US) continued to cast doubts on the ability of Organisation of Petroleum Exporting Countries (OPEC) to protect prices.
Oman recently announced that it would cut crude oil exports to Asia by 15 per cent to meet local demand.
“Oman crude has come under relatively greater pressure in recent days because of a decline in purchases from the Chinese independent refiners.
Oman crude oil futures crashed to $47.97 on Friday, more than 13 per cent below its 2017 peak, after reports on rising US crude production and slower than expected decline in inventories, wiping out price gains made by OPEC supply cut agreement.
Although OPEC production cuts have strengthened the benchmark Oman crude against Brent and WTI grades, it has come under pressure due to the dwindling demand from Chinese independent refiners.
Iran says $55 oil price suitable, sees supply cut extension
“The price range of $55 per barrel would be suitable for oil,” Zanganeh said, according to the oil ministry’s news website SHANA.
“I think non-OPEC oil producers will also second (an) extension of the plan,” said Zanganeh, speaking on the sidelines of an energy fair in Tehran.
DUBAI (Reuters) – Iran sees $55 per barrel as a suitable price for crude oil, and believes that OPEC and non-OPEC producers are likely to extend output curbs to support prices, Iranian Oil Minister Bijan Zanganeh was quoted as saying on Saturday.
Oil prices closed higher on Friday, rebounding from five-month lows, following positive U.S. jobs data and assurances by Saudi Arabia that Russia is ready to join OPEC in extending supply cuts to reduce a persistent glut.
Zanganeh said members of the Organization of the Petroleum Exporting Countries (OPEC) have signaled that they are leaning towards extending the supply cuts, SHANA reported.