Oil prices hit $90 over rising supply concerns
Muscat – Oil prices increased on Friday over rising concerns for global oil supply routes in the Middle East, despite the strong US dollar and falling hopes over US Federal Reserve's interest rate cuts.
International benchmark Brent crude traded at $90.42 per barrel as of 0733 GMT, a 0.76% increase from the closing price of $89.74 per barrel in the previous trading session.
The US benchmark West Texas Intermediate (WTI) traded at $85.81 per barrel at the same time, a 0.93% rise from the previous session that closed at $85.02 per barrel.
Oman Crude price (June delivery) on Friday reached $90.09 per barrel at the Dubai Mercantile Exchange, according to the DME data.
The average price of Oman crude (April delivery) has stabilised at $80.85 per barrel, which is $2.1 per barrel higher than March delivery 2024.
Geopolitical tensions in the Middle East continue to put global energy supply routes at risk and drive up oil prices.
A missile strike on the Iranian Consulate in the Syrian capital, Damascus, resulting in the killing of a top commander of Iran’s Islamic Revolutionary Guard Corps and six other officers, exacerbated tensions in the region, where busy energy supply routes are located.
Oman crude price (June delivery) on Friday reached $90.09 per barrel. The average price of Oman crude (April delivery) has stabilised at $80.85 per barrel
Tensions between Israel and Iran further rose on Wednesday, when Tehran vowed to avenge the attack, while Tel Aviv expressed readiness to retaliate if attacked.
However, uncertainty over the timing of the US Federal Reserve’s interest rate cuts combined with statements by Fed officials limited upward price movements.
US consumer inflation figures for March came in higher than estimates, while US producer inflation in March came below market expectations, but accelerated on an annual basis.
The strengthening of the US dollar against other currencies also halts additional price rises by making oil more expensive for foreign currency holders.