Oman oil price tops $104 per barrel on supply disruption concerns

Muscat: The official price of Oman oil for delivery in next November rose by $2.74 settled at $104.54 per barrel on Monday.

It is worth noting that the monthly average price of Oman crude oil for delivery in September 2026 amounted to $76.36, marking a decline of $2.73 compared to the delivery price for August.

Meanwhile, global oil prices continued their upward trajectory on Monday, as concerns over prolonged supply disruptions in the Middle East intensified amid ongoing exchanges of attacks between the United States and Iran.

Brent crude futures rose 52 cents, or 0.54 percent, to $96.80 per barrel, while US West Texas Intermediate (WI) crude gained 66 cents, or 0.72 percent, to $92.14 per barrel.

Brent surged 7.8 percent last week, while WTI climbed about 10 percent, after the US and Iran resumed their attacks, leading to a decline in oil flows.

Marine intelligence firm Marisks said commercial tankers are increasingly being used deliberately as instruments of mutual economic pressure, significantly eroding the previous distinction between military confrontation and commercial shipping.

Meanwhile, the Opec+ alliance decided on Sunday to keep its oil production policy unchanged for October 2026, as the group works towards agreeing on new quotas before determining its next steps on output.

In August, the alliance agreed to increase production for September following gradual hikes, fully reversing a 1.65 million barrel per day supply cut agreed in 2023. Despite the agreed increases, output remains well below target levels due to the war.

The alliance comprises Opec and other producers, including Russia.

Opec+ currently has very limited ability to influence the actual oil market, said Jorge León of Rystad Energy. "The group can adjust production targets on paper, but it cannot guarantee that those barrels will be produced or actually reach the market."

"The focus is now shifting away from monthly production adjustments towards a much more important discussion about 2027," he added.
Opec+ continues to apply another production cut, covering most of the 21-member group, until the end of 2026. Before deciding how to phase out the cuts and return production to the market, the group must review members' oil production capacity to determine baselines for 2027 output, which will form the basis for setting quotas.

The group's next meeting is scheduled for 4 October 2026.