DME Oman Crude Oil settled above $60/b for the first time in four months
Dubai, 16 April 2015 - Oman crude oil prices on the Dubai Mercantile Exchange settled above $60/b for the first time in four months, as prices continued to climb on signs of a slowdown in US shale oil production.
Front-month June DME Oman futures contract settled 12:30 Dubai time at $60.22/b, up $1.94 on the previous close and the highest price since December 12, 2014. Oman prices have now gained $16.87/b from the six year low of $43.35/b in mid-January, or 39%.
The renewed strength this week came as the US Energy Information Administration forecast that shale production is set to fall by 57,000 barrels a day in May, suggesting US domestic output is close to peaking. Additionally, the latest inventory data from the US showed a smaller weekly build in oil stocks than the market had expected.
Christopher Fix, Chief Executive of DME, said: : "The oil markets are certainly seeing some more bullish momentum at the moment, but whichever way the price goes from here I’d expect continued volatility to be a major part of the story. In the first eight months of 2014, DME witnessed price moves of over 2% in just 2 occasions, and since October 2014 till date DME has seen around 50 daily price moves of the same magnitude"
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