MUSCAT: The official price of Oman crude oil for June delivery rose sharply on Wednesday, reaching $99.26 per barrel. The latest benchmark marks an increase of $7.25 compared to the previous day’s price of $92.01, reflecting heightened volatility in global energy markets.

The uptick comes against a backdrop of escalating geopolitical tensions and supply concerns, particularly in key transit routes. Despite the daily surge, the average monthly price of Omani crude for April delivery stood at $68.15 per barrel, up by $5.98 from March levels, indicating a broader upward trend in recent weeks.

Globally, oil markets experienced mixed movements. Prices initially eased after early gains in Asian trading, as investors weighed the prospects of renewed negotiations between the United States and Iran. The decision by Donald Trump to extend a ceasefire with Iran added a degree of uncertainty, with questions remaining over whether all parties would commit to continued de-escalation.

However, prices rebounded strongly later in the day amidst fresh security concerns in the Strait of Hormuz, a critical artery for global energy trade. Brent crude rose above $100 per barrel, gaining $1.59 to reach $100.07, while US West Texas Intermediate advanced $1.51 to $91.18. Both benchmarks had already recorded gains of around 3 per cent in the previous session.

Market sentiment was further shaken by reports of gunfire incidents targeting at least three container ships transiting the Strait of Hormuz. The vital waterway, which typically handles around one-fifth of global oil and liquefied natural gas flows, has come under increased scrutiny following recent regional tensions and retaliatory measures involving Iran.

In parallel, supply-side developments in Europe added to market uncertainty. Ukrainian President Volodymyr Zelensky indicated readiness to resume operations on the Druzhba pipeline, although industry sources suggested potential disruptions to Russian oil flows via Kazakhstan to Germany starting May.

Attention is also turning to US inventory data, with early estimates pointing to a drawdown in crude stocks. Analysts suggest that continued declines in inventories, coupled with strong export demand, could reinforce upward pressure on prices in the near term as global buyers seek to secure supply amidst ongoing instability.

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