Oman Central Bank's Foreign Assets Decline to 6.5 Bln Rials in November

The total investments of traditional commercial banks in securities increased by 13.2 percent to reach about $12.5 billion by the end of November. (Oman News Agency).
The total investments of traditional commercial banks in securities increased by 13.2 percent to reach about $12.5 billion by the end of November. (Oman News Agency).
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Oman Central Bank's Foreign Assets Decline to 6.5 Bln Rials in November

The total investments of traditional commercial banks in securities increased by 13.2 percent to reach about $12.5 billion by the end of November. (Oman News Agency).
The total investments of traditional commercial banks in securities increased by 13.2 percent to reach about $12.5 billion by the end of November. (Oman News Agency).

The foreign assets held by the Central Bank of Oman contracted to 6.52 billion Omani riyal ($16.98 billion), marking a 4.27 percent decrease compared to year-end 2022, according to the latest data.

Concurrently, traditional bank lending in Oman witnessed a 4.45 percent year-on-year upswing in November, as reported in the monthly statistical bulletin released by the Central Bank.

The weighted average lending rate increased from 5.372 percent to 5.485 percent over the same period.

​The nominal GDP declined 3.9 percent at the end of the third quarter of 2023 over the same period of 2022. The contraction was driven by a decrease in the output of the hydrocarbon sector by 15.4 percent.

As for the real GDP, it demonstrates an increase of 2.0 percent during the same period under discussion. Similarly, this expansion was driven by 0.5 percent of the oil sector and 2.7 percent of the non-oil sector.

The average Omani oil price at the end of November 2023 at $81.6 per barrel was lower by 14.8 percent than in November 2022.

Credit to the private sector demonstrated an increase of 4.8 percent (Y-o-Y) to reach OMR 25.5 billion ($66 billion) at the end of November.

Total deposits held with ODCs registered a Y-o-Y significant growth of 9.9 percent to reach OMR 28.4 billion ($73.97 billion).

The biggest contribution in private sector deposits was from household deposits at 49.7 percent, followed by non-financial corporations at 34.1 percent.

Credit to the private sector increased by 3.3 percent to reach OMR 20.1 billion ($52 billion), while their overall investments in securities increased by 13.2 percent to around $12.5 billion at the end of November 2023.

Investment in Government Development Bonds decreased by 10.5 percent to OMR 1.9 billion ($4.5 billion).

The weighted average interest rate on OMR deposits with conventional banks increased from 1.923 percent at the end of November 2022 to 2.603 percent at the end of November 2023.



Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions
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Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil prices climbed on Tuesday reversing earlier declines, as fears of tighter Russian and Iranian supply due to escalating Western sanctions lent support.

Brent futures were up 61 cents, or 0.80%, to $76.91 a barrel at 1119 GMT, while US West Texas Intermediate (WTI) crude climbed 46 cents, or 0.63%, to $74.02.

It seems market participants have started to price in some small supply disruption risks on Iranian crude exports to China, said UBS analyst Giovanni Staunovo.

In China, Shandong Port Group issued a notice on Monday banning US sanctioned oil vessels from its network of ports, according to three traders, potentially restricting blacklisted vessels from major energy terminals on China's east coast.

Shandong Port Group oversees major ports on China's east coast, including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

Meanwhile, cold weather in the US and Europe has boosted heating oil demand, providing further support for prices.

However, oil price gains were capped by global economic data.

Euro zone inflation

accelerated

in December, an unwelcome but anticipated blip that is unlikely to derail further interest rate cuts from the European Central Bank.

"Higher inflation in Germany raised suggestions that the ECB may not be able to cut rates as fast as hoped across the Eurozone, while US manufactured good orders fell in November," Ashley Kelty, an analyst at Panmure Liberum said.

Technical indicators for oil futures are now in overbought territory, and sellers are keen to step in once again to take advantage of the strength, tempering additional price advances, said Harry Tchilinguirian, head of research at Onyx Capital Group.

Market participants are waiting for more data this week, such as the US December non-farm payrolls report on Friday, for clues on US interest rate policy and the oil demand outlook.