‘Good OPEC decision’

The current price is an increase of 10.61 per cent, when compared to Thursday’s price.

Dr Anchan CK, an investment advisor, said that OPEC made a very good decision and credible reduction in output.

“The market is benefitting from the deal,” said the investment advisor, noting that if winter prices go up due to increases in consumption, then the market might see a price increase in the coming days, too. “Now, it may range between $50 and $60 in 2017,” the advisor added.

Doubts had been growing about OPEC’s ability to reach an agreement, causing oil prices to plunge just before Wednesday’s meeting. In the end, oil spiked 12 per cent on the week, being the biggest weekly gain since 2011 and leaving oil prices at nearly double their 13-year low of $26 per barrel in February.

Meanwhile, as uncertainty about the OPEC meetings was driving the market, lower retail prices were announced by the Oman government for December. In Oman, drivers are enjoying a dip of four to six per cent in fuel prices.

In December, M91 fuel costs 165 baisas per litre, while in November it was 173 baisas per litre. The price reduction is some 4.8 per cent. Meanwhile, the price of Super Grade is now 176,while in November it was 183 baisas.

The Super Grade’s new price is some 4 per cent lower.

The new price of diesel is 177, though it was 187 baisas in November, which is 5.6 per cent higher than the new price.

Recently, the International Monetary Fund (IMF) reported that the country’s “break-even” price for a barrel of oil this year is $73 per barrel. Despite the price of a barrel of crude rising to over $50 for the first time since August, IMF experts believe another $23 per barrel is required just to balance the country’s books.

“The IMF estimates a fiscal break-even oil price for Oman at a high of $73.1 this year and a higher $76.7 next year - one of the highest among the GCC nations,” Dr Nasser Saidi, a member of the IMF’s Regional Advisory Group for MENA, told Times of Oman.