Muscat: Oman crude rose to $ 110.81 a barrel on the Dubai Mercantile Exchange. In a single day, it rose to $ 9.96 a barrel. Oman was trading at $ 100.85 a barrel on Tuesday. Internationally, the oil price was $ 112. However, prices fell by two dollars as OPEC, an ally of oil-producing nations, decided to increase production. There has been a 10 per cent rise in prices in the last few days. Economists, including Amartya Sen, have warned that oil prices might rise further in the current context.
The Russia-Ukraine war is the main reason for the rise in oil prices. Russian oil is a condition that other countries cannot afford. Russia’s unable to sell oil due to sanctions by Swift, an international money transfer company. Russia’s major European countries are refraining from buying oil from Russia. Many countries are also unable to transact, mainly due to the Swift embargo. As a result, 70 percent of Russia’s oil can not be exported. This means that 3.8 million barrels of oil per day remain unsold. Some European companies have also ordered the untouchability of Russian oil. Insurance and oil tankers operating in the oil sector are also keeping Russian oil out.
Current problems are also affecting refineries. Concerns remain over issues including refineries’ oil businesses and bank loans. Meanwhile, an emergency meeting of OPEC delegates on Wednesday decided to increase oil production, bringing relief to oil – consuming countries. The decision was made to produce an additional four lakh barrels per day. According to OPEC, global oil prices have reached $ 111 a barrel. But countries other than Saudi Arabia and the UAE will not be able to increase oil production.
Many countries are now producing to the maximum of their productivity. With the rise in oil prices, gold prices have also risen. Jewelers in Oman charge 23,700 per gram. Gold prices are likely to rise further, experts said. Rupee depreciates once morest dollar in early trade This has also pushed up the exchange rate of the rial. The exchange rate in Oman was set at 196 rupees on Wednesday.