MUSCAT: Oman oil price (July delivery 2024) yesterday reached $85.20, comprising a rise by 67 cents from the price of last (Friday) which stood at $84.53. The average price of Oman oil (May delivery 2024) has stabilised at $78.49 per barrel, thus $3.74 per barrel lower than April delivery 2024. Meanwhile, global physical crude oil markets are weakening because of soft refinery demand and ample supply, traders and analysts told Reuters, in a move that could spell further weakness for benchmark crude futures.
The weakness indicates high interest rates and inflation are depressing consumer and industrial demand, especially in Europe, at a time when supply is rising from non-OPEC producers such as the United States. This could bolster arguments for OPEC+ to maintain production curbs at a June 1 meeting. Demand from refiners is soft, even though their crude intake capacity has increased with the end of springtime maintenance.
“Rising refinery capacity has not been met by an expected rise in demand,” Saxo Bank analyst Ole Hansen said. — ONA/Reuters
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