Published: Tue, June 11, 2019
Finance | By Loren Pratt

WTI, Brent up 2.7% as Saudi Arabia signals deal extension

WTI, Brent up 2.7% as Saudi Arabia signals deal extension

Many oil exporting countries have confirmed they are prepared to hold a policy meeting with OPEC in Vienna over July 2-4, instead of the scheduled date later this month, Novak said.

Saudi: Saudi Energy Minister Khalid Al Falih said Russian Federation was the only remaining oil exporter still undecided on the need to extend the global output deal between OPEC and its allies until the end of the year, TASS news agency reported on Monday.

The dramatic decline in oil prices, caused by rising U.S. stockpiles, lukewarm demand growth as well as fears of a United States recession had raised the possibility of Opec+ agreeing to an extension well into the second half of the year.

Front-month Brent crude futures, the global benchmark for oil prices, were at $63.61 at 0411 GMT, 32 cents, or 0.5%, above Friday's close.

Addressing to Saudi energy minister's comment on OPEC+ output cut, an analyst at futures brokerage at FXTM, Han Tan said, "Brent futures continue rising. after the Saudi Arabian Energy Minister expressed confidence that OPEC+ producers will prolong their output cuts program through the second half of 2019".

Al-Falih said he may have another opportunity to talk to Novak at a G20 meeting in Japan beforehand.

Yet, Russian energy minister Alexander Novak said there is a still a risk that oil producers pump out too much crude and prices fall sharply.

Supply has also been limited by US sanctions on oil exports from Venezuela and Iran.

"Over the past week or so, our economists have revised down their GDP growth outlook for the US, China, India and Brazil", Barclays bank said on Monday in a note about the economy and its impact on oil demand.

"Also with the Mexican stalemate averted and no harmful shockwaves from this weekend G-20 meeting, risk assets should open with a bounce in their step and oil could trade favorably as WTI and Brent will continue to track the broader risk environment high", Innes said.

The OPEC+ managed to boost crude prices by more than 40% this year through late April through a deal to jointly cut at least 1.2 million barrels per day over a six-month period.

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