Oman is urged to invest in specialized energy-trading expertise with the same commitment it has applied to developing its oilfields, refineries, and ports, according to Ali bin Abdullah al Riyami, former Director General of Marketing at the Ministry of Energy and Minerals. Speaking ahead of 2027, Al Riyami emphasized the need for professionals skilled in market dynamics, pricing strategies, shipping logistics, hedging, risk management, and contract negotiation to enhance the value derived from Oman's energy resources.
Highlighting his marketing experience, Al Riyami noted that the true value of a barrel of oil is shaped not only at the extraction stage but significantly at the negotiation table, as well as in determining the timing and target markets for sales. He advocated for a strategic focus beyond merely increasing production volumes towards maximizing returns on investments in Oman’s energy infrastructure and geographic advantages.
Oman’s oil sector has evolved into a more integrated system over the past two decades, encompassing production, refining, storage, ports, and export facilities. The key challenge now lies in unifying these components into a cohesive framework that optimizes the value of each barrel produced. He drew attention to the importance of enhancing the flexibility of Oman's export and storage operations, particularly leveraging its strategic location with facilities such as Ras Markaz and the growing complex at Al Duqm. The Ras Markaz terminal’s direct link to the Duqm refinery through an 80-kilometer pipeline exemplifies this infrastructural integration.
Al Riyami stressed that refining decisions should be based on economic and commercial considerations rather than being viewed as ends in themselves, advocating for a flexible approach between refining and exporting crude oil depending on market conditions.
Regarding production, he outlined future challenges as sustaining capacity efficiently while reducing production costs and lowering the carbon footprint per barrel. He predicted that competition in the oil market will increasingly depend not just on reserve size but on the ability to provide reliable, cost-effective, and lower emissions output.
Al Riyami also underscored the importance of continuing investment in renewable energy and green hydrogen initiatives. However, he urged a pragmatic assessment of such projects, prioritizing economic viability and market commitments over symbolic ambition. He noted that success in hydrogen production depends on competitive pricing, securing reliable buyers, and establishing long-term contracts to ensure project sustainability.
Looking ahead, Al Riyami envisions Oman evolving from a reliable producer and exporter into a more influential participant in global energy trading, adding greater value to the sector through market engagement.
On the near-term oil market outlook for the remainder of 2026, he predicted ongoing volatility driven by supply disruptions, shipping challenges, geopolitical factors, and fluctuating inventories. While current price pressures stem from these risks and increased transport and insurance costs, he cautioned that the global economy’s limited tolerance for sustained high energy prices would ultimately constrain market dynamics. He reiterated a market historical pattern where elevated prices often trigger demand reductions and consumption shifts, leading to eventual price corrections.
Al Riyami suggested that easing tensions and stabilization in supply chains could prompt a quicker-than-expected decline in prices, as some of the current levels incorporate a substantial risk premium. Conversely, any fresh disruptions could reverse this trend. He refrained from speculating on exact year-end price levels, noting the inherent uncertainty in markets influenced by fluid political and security developments.