Oman may set up soon an oil trading company, according to an official in the sector.
Oman, an independent oil-producing country, is conducting a study of its oil pricing mechanism to maximize the benefit, he said, quoted by the Gulf News on Sunday.
The study, to be completed by year-end, would determine the extent of the current pricing effectiveness, said Rashid bin Khalid Al Barwani, adviser to the Omani Ministry of Oil and Gas.
"The Omani oil price is currently used as an indicator in oil markets to fix prices of other oils, thus the ministry is endeavoring to maintain its actual market value," he said.
He said the study, being carried out in cooperation with the London-based Petroleum Economics Ltd (PEL), would research the need for alternatives to price Omani oil, and whether to continue in accordance with the current monthly pricing.
"The monthly pricing adopted by the government has enhanced the confidence of importers and reduced the effect of the market force and speculations in Omani oil." - Albawaba.com
