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A near 30% fall in world oil prices since June has raised questions over what effect this could have on producers. But while some of its neighbors fear for the worst, Oman insists it has made contingencies for the slide, and is confident it will not hit its oil investment plans going forward.
Crude oil has dropped into a bear market since mid-year, pulling prices down to levels last seen in late 2010. Amid a global oil glut, Brent crude oil futures have slumped a massive 30% since late June – when they were trading at around $115/B (see p28).
This has raised fears over future oil sector investment across the globe, particularly in those regions where unconventional oil is beginning to dominate the production portfolio. Just last week in Vienna, OPEC Secretary General ‘Abd Allah al-Badri warned that this slide in oil prices, should it continue, would more than likely put a stop on most investment. “Most of the high drilling cost wells will be stopped, and nobody will invest in a very low price,” he said. (CONTINUED - 1632 WORDS)