Middle East crude prices fall sharply week ending March 19 

Dubai, (Quantum Commodity Intelligence) Benchmark Middle East crude oil prices hit fresh 14-month highs in the week ending March 19, before retreating sharply on fears over the demand recovery and speed of the vaccine rollout in major consuming economies, particularly Europe.

Dubai cash prices for May delivery traded at $68.20/b on March 15, the highest level since January 2020, before slumping nearly $6/b to close out the week at $62.35/b.

Likewise, Oman futures trading on the DME reached a 13-month high of $68.24/b before ending the week at $62.45/b.

Both Dubai and Oman closed down by more than 8% from the peak.

Oil prices had continued the bull run at the start of the week, but markets were heavily sold off as a number of European nations introduced new lockdowns in a bid to contain fresh outbreaks of COVID-19.

Additionally, distribution issues and concerns over side effects is expected to delay the European vaccination rollouts and dampen hopes of an economic upturn moving into the summer months.

On the supply side, the OPEC+ alliance continues in its bid to rebalance markets, although Middle East sentiment was dampened by reports that Iran was stepping up exports in anticipation of easing U.S. sanctions.

However, investment bank Goldman Sachs said it sees the price pullback as a buying opportunity, with the market taking at breather following the firm uptrend since early February.

The latest drone strike on Saudi oil facilities had little impact on prices, only briefly halting the downtrend. The March 19 strike on the refinery in the Saudi capital of Riyadh did not significantly disrupt operations, the Kingdom's energy ministry said.