Oman crude surges to 2008 levels, hits $125 mark

Muscat: The Oman crude was traded for $125.16 per barrel on Monday, an increase of $16.29 per barrel from Friday. This is the highest price since the summer of 2008. The budget for 2022 is based on an oil price per barrel as compared to USD 45/bbl in the tenth five-year plan. The average price of oil for 2021 was $61per barrel while the budget was based $45 per barrel. As per the budget, the deficit is estimated to be RO 1.55 billion, which is expected to represent 15 percent of revenues and 5 percent of the GDP in 2022. Globally, oil prices soared and shares sank in frantic trading on Monday as the risk of a U.S. and European ban on Russian products and delays in Iranian talks triggered what was shaping up as a major stagflationary shock for world markets. The euro extended its slide, hitting parity against the safe-haven Swiss franc, and commodities of all stripes were on the rise as the Russian-Ukraine conflict showed no sign of cooling. Russia calls the campaign it launched on Feb. 24 a 'special military operation', saying it has no plans to occupy Ukraine. Having surged 18% in wild early action, Brent was last quoted $9.95 higher at $128.06, while U.S. crude rose $8.35 to $124.03. Oil prices soared to their highest since 2008 due to delays in the potential return of Iranian crude to global markets and as the United States and European allies consider banning imports of Russian oil. Talks to revive Iran's 2015 nuclear deal with world powers were mired in uncertainty on Sunday following Russia's demands for a U.S. guarantee that the sanctions it faces over the Ukraine conflict will not hurt its trade with Tehran. China has also raised new demands. In response to Russia's demands, U.S. Secretary of State Antony Blinken said on Sunday that the sanctions imposed on Russia over its Ukraine invasion have nothing to do with a potential nuclear deal with Iran. The United States and European allies, meanwhile, are exploring banning imports of Russian oil, Blinken said on Sunday, and the White House coordinated with key Congressional committees moving forward with their own ban. Brent rose $11.67, or 9.9%, to $129.78 a barrel by 6:50 p.m. EST (2350 GMT), while U.S. West Texas Intermediate (WTI) crude rose $10.83, or 9.4%, to $126.51, putting both contracts on track for their highest daily percentage gains since May 2020. In the first few minutes of trade on Sunday, both benchmarks rose to their highest since July 2008 with Brent at $139.13 a barrel and WTI at $130.50. Both contracts hit their highest in July 2008 with Brent at $147.50 a barrel and WTI at $147.27.