Oil on upward trajectory; Oman oil rises to $86

Oil on upward trajectory; Oman oil rises to $86

Muscat – Omani oil price on Monday headed to the highest level in three months, achieving the largest monthly gain in more than a year, amid expectations that Saudi Arabia will extend the voluntary production cut to September and tighten global supply.

The official price of Oman oil on Monday for September delivery rose 78 cents to US$86.04. Further, the monthly average price of Oman crude oil for July delivery amounted to US$74.94 per barrel, down US$8.34 compared to June delivery price.

Saudi Arabia is expected to extend a voluntary oil output cut of 1mn barrels per day (bpd) for another month to include September, analysts said. ‘Oil prices are up 18% since mid-June as record high demand and Saudi supply cuts have brought back deficits, and as the market has abandoned its growth pessimism,’ Goldman Sachs analysts said on Sunday.

‘We still expect the extra 1mn bpd Saudi cut to last through September, and to be halved from October.’

The bank maintained its Brent forecast at US$86 a barrel for December and expects prices to rise to US$93 in the second quarter of 2024.

Goldman analysts estimate global oil demand climbed to an all-time high of 102.8mn bpd in July and see solid demand