Saudi Arabia raised its prices for crude sales to Asia for the second month running, indicating improved demand in the region and pushing oil price to climb more than $1 a barrel on Monday, April 6.
International benchmark Brent regained ground after plunging as much as five per cent on Thursday, April2, when Iran reached a preliminary deal on its nuclear program with six world powers.
More Iranian oil could enter global markets if that is followed by a comprehensive deal by June.
However, expectations of an immediate increase in supply have been reduced as analysts warned a ramp-up in exports could take months and would likely not happen until 2016.
An industry analyst, Morgan Stanley, said: “While clearly a bearish headline, a final deal and full lifting of sanctions still faces a number of obstacles.”
Brent crude for May delivery LCOc1 touched a high of $56.90 a barrel and was up $1.29 from Thursday, April 2, at $56.24 by 1436 GMT. U.S. crude for May delivery CLc1 was $1 higher at $50.14 a barrel, after earlier touching $50.97.