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Rumhy sees oil prices staying in $65-$75 range until year-end

Rumhy sees oil prices staying in $65-$75 range until year-end

MUSCAT: Oman’s Oil and Gas Minister Mohammad Bin Hamad Al Rumhy said he expected global oil prices to stay in a range between $65 and $75 a barrel until the end of the year, the Oman News Agency (ONA) reported on Saturday.

Rumhy was also quoted as saying Oman remained committed to the Opec+ agreement until the end of 2019.

Under the accord reached in December 2018, members of the Organization of the Petroleum Exporting Countries (Opec) along with Russia and other non-Opec producers — an alliance known as Opec+ — agreed to reduce oil supply by 1.2 million barrels per day from Jan. 1 for six months.

The Opec+ alliance was formed in 2017. Since its inception, oil prices have doubled to more than $60 per barrel, mainly as a result of a series of production cuts by its members.

The official selling price (OSP) for Oman crude in May will rise by $2.50 to $66.98 a barrel, the highest in five months, Reuters calculations based on data from the Dubai Mercantile Exchange (DME) showed on Friday.

However, Saudi Arabia is having a hard time convincing Russia to stay much longer in OPEC-led pact, and Moscow may agree only to a three-month extension. Should Russia pull out of the latest deal on cutting output, oil prices would drop.

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