Oman Crude Prices Decline

Oman crude oil prices sharply fell on Monday amid supply uncertainties following the OPEC+ production cut decision and demand fears in the world’s largest oil consumers, the US and China.

According to the Dubai Mercantile Exchange data, Oman crude dropped by US$3.28, or 4.03%, at US$77.96 per barrel on Monday from US$81.24 per barrel recorded on Friday.

International benchmark Brent crude was down US$1.10, or 1.4%, at US$77.78 a barrel in morning trade in London. US benchmark West Texas Intermediate (WTI) crude futures also fell US$1.09, or 1.5%, to US$72.98, according to a Reuters report.

During the OPEC+ ministerial meeting held on Thursday, oil producers endorsed their previous output cut decisions, which had been agreed to extend until the end of next year. Soon after the meeting, several members of the group introduced some voluntary cuts individually, most of which were extensions of current output cuts.

The OPEC+ cuts were voluntary in nature, raising doubts about whether or not producers would fully implement them. Investors were also unsure about how the cuts would be measured.

Concerns about an estimated demand weakness in the world’s largest oil consumers, the US and China, also supported downward price movements. According to official data released on Thursday, China’s manufacturing activity declined for a second straight month in November.