MUSCAT : The drop in oil prices follows a period of volatility in the markets, which has been exacerbated by concerns over potential recessions in major economies. This economic uncertainty has had a ripple effect, impacting the stock and banking sectors.

Ali bin Abdullah Al Riyami, an energy expert, explained that global oil prices have been on a downward trend since last week, affected by the global economic situation and fears that major economies will enter a recession, which has also affected the stock and banking sector.

He said in a statement to the Oman News Agency that the decline is a reflection on the US non-agricultural jobs data and its impact on the US markets in general as well as the decline in demand for oil in America and Asia, especially in China, which is witnessing limited demand for oil. All this had a clear impact on the shares of global companies, which was negatively reflected in global oil prices, he indicated.

He added that despite the unstable geopolitical atmosphere in the region, it did not significantly affect oil prices, but rather the opposite; the price of Omani oil fell today by around 4 US dollars and 65 cents. This decline is expected to continue in the coming days unless there is encouraging news such as OPEC’s intervention in requesting an emergency meeting to discuss limiting the price decline further.

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