For the second time in nearly a month, Oman Crude recovered lost ground to settle at well above the psychologically significant $55 per barrel mark yesterday.
Prices rose 62 cents to reach $55.34 in trading yesterday in trend with international crude prices, buoyed by expectations that Opec and non-Opec producers would extend their joint deal on global output cuts well beyond the mid-year timeframe.
The uptick in prices comes as Opec heavyweight Saudi Arabia announced that it is keen for the production cut to be extended for six months to the end of this year to sustain efforts to rebalance markets. Opec is due to meet next month to evaluate, among other things, the positive effects of the deal on global crude inventories.
In recent weeks, Oman too has weighed on the debate by similarly calling for a rollover of the deal by Opec and non-Opec members for a further six months, insisting that market rebalancing efforts should be sustained.