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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oman crude jumps $6.46 ahead of output cut

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Muscat: The Oman crude for June delivery was traded at Dubai Mercantile Exchange for $26.62 per barrel.


The Oman crude jumped by $6.46 compared to Wednesday’s price of $20.15 per barrel.


Russia and OPEC member Saudi Arabia spearheaded the latest efforts by OPEC+ to cut production by the equivalent of 10 percent of global supplies from May 1 in a bid lift prices as demand for crude plunged by as much 30 percent due to global lockdowns.


The deal seeks to reduce a glut of oil that is struggling to find a home as global storage facilities rapidly fill.


Oil prices are set to recover with the OPEC+ production cuts and gradual lifting of lockdowns around the world in the second half of 2020 when oil prices “will be $40 starting from the third quarter,” oilprice.com had quoted Mohamed Arkab, Energy Minister of Algeria has said.


"The global economy will not stay paralyzed for too long, and together with the 9.7 million bpd cuts that OPEC and its allies pledged for May and June, these factors are set to lift the price of oil in H2 2020," Arkab said.


In China, which was hit first by the coronavirus, and which exited the lockdown first, the return to normalization in the transportation sector is driving up global demand,” the minister said. Reuters


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