Oman Crude Benchmark Slumps

The Oman Crude Oil Futures Contract plummeted to a new low on Monday to US$31.38/barrel on the Dubai Mercantile Exchange (DME) after losing almost 9% of its value. The crude oil benchmark last traded at US$34.79/b on Friday.

Monday’s downslide stems from the oil price war between Saudi Arabia and Russia that erupted following the collapse of the Opec+ alliance of Opec members and non-members. The rift caused a meltdown in global oil prices as well as equities amid mounting concerns over the spread of the coronavirus.

US benchmark West Texas Intermediate (WTI) briefly fell below US$30 a barrel, or 5.5%, in morning Asian trade before regaining its footing. It was trading at US$31.13 a barrel at around 05:30 GMT, down nearly 2% from Friday’s close.

Prices rallied briefly last week after US President Donald Trump announced US$50 billion in Federal spending to stem the damage from the coronavirus and plans to buy “large quantities of crude oil” to top up strategic reserves.