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Oman Crude Oil Futures Contract fell to a 26-month low as Thursday’s settlement price was the weakest since July 2012.
The front-month November DME Oman futures traded at a low of $95.98 per barrel before settling at $96.17 per barrel with more than 4,526,000 barrels traded during the pricing window.
Thursday’s price was $1.30 down from the previous day’s settlement- a fall of over $15 per barrel in less than three months. The lowest price of 2013 was $96.84 per barrel on the 18th of April.
The DME Marker Price is used by the governments of Oman and Dubai to calculate the Official Selling Price for crude oil exports, and Oman crude is widely used as a global reference price.
Oman oil prices have been down since peaking in June above $111 per barrel. The news as come as the latest release of OPEC’s Monthly Oil Market Report predicted a cut in oil demand and rise in supply for both 2014 and 2015.
The report also noted that Saudi Arabia had cut its crude production by about 400,000 barrels a day during August in response to softer demand and declining prices.
Christopher Fix, chief executive of DME, said: “The market has clearly moved to an oversupply situation, which is overriding any geopolitical concerns such as Iraq and Ukraine.
“Middle East oil producers are facing pressure on a number of fronts and looking for pricing solutions that will help maintain market share, while at the same time achieve a fair market price.”
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