Oman Crude Oil Futures Contract at Five-Year Low

Source: Observer 12/2/2014, Location: Middle East

Oman crude oil prices on the Dubai Mercantile Exchange closed below $70/barrel yesterday for the first time in more than four years, with prices plunging by around $9.50/b in the last three trading sessions as OPEC's decision not to cut oil production weighed heavily on the market. Front-month DME futures were last below $70/b in July 2010. The new front-month February DME Oman futures contract closed 12:30 Dubai time at $67.23/b, down $3.07 on the previous close and the lowest closing price since September 2009. The December contract, which expired on Friday, briefly traded below $70.00/b before rebounding to settle at $70.47/b. Prices peaked this year peaked above $111/b in June but have now fallen by over $40/b in four months, or almost 40%. The average 2014 price of Oman crude as of close of business on Friday is $100.32/b. The latest losses came after OPEC said its members had agreed to roll over the ceiling of 30 million barrels per day, at least 1 million above OPEC's own estimates of demand for its oil next year.

The monthly average price of the DME for November, which is used by Oman and Dubai to set their Official Selling Price (OSP) was $78.24/b, down $8.72/b (10 per cent) from an average of $86.96/b for the December contract traded in October and the lowest OSP since October 2010 when the average was $80.52/b. Christopher Fix, Chief Executive of DME , said: "OPEC's decision to maintain production at current levels is a clear signal to let the market find its own level, now the market will be watching carefully to see at which price level the market comes back into balance."

MSM loses 73 points
Meanwhile, Muscat Securities Market general index 30 yesterday lost 73.7 points comprising a decline of 1.13 per cent to close at 6432.32 points. The trading value today stood at RO 11.86 million comprising a decline of 11.03 per cent compared to the last session, which stood at RO 13.33 million. The market value fell by 0.49 per cent to reach about RO 14.42 billion.


Brazil >>  6/17/2022 - Petrobras, regarding the news published in the media, clarifies that by request of the Chairman of the Board of Directors, its Board of Directors held...
Canada >>  6/16/2022 - PetroTal Corp. is pleased to announce the following sales related update.

720,000 barrels of oil under contract for export from Bayovar. Ap...


United States >>  6/15/2022 - ExxonMobil released the following statement in response to a letter from President Biden.

We have been in regular contact with the adminis...

United States >>  6/14/2022 - The U.S. Department of Energy (DOE) announced the fourth Notice of Sale of 45 million barrels of crude oil from the Strategic Petroleum Reserve (SPR)....

Iran >>  5/31/2022 - The managing director of the National Iranian Oil Company (NIOC) here said there is no problem regarding oil debt collection. ...
Russia >>  5/31/2022 - EU leaders urged Russia to halt its indiscriminate attacks on civilians and infrastructure, as well as to evacuate all of its troops and military equi...

Related Categories: Coal  Electricity  General  Natural Gas  Oil 

Related Articles: Coal  Electricity  General  Natural Gas  Oil 


Gulf Oil and Gas
Copyright 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.