Oil gains as Opec and allies vow output cut extension

Daniel Fowler
June 11, 2019

"We need to continue to monitor the situation and see what happens in June so we can take a balanced decision in July", says Energy Minister Novak.

Saudi Energy Minister Khalid Al-Falih said on Monday Russia was the only oil exporter undecided on extending an output deal between OPEC and its allies until the end of the year.

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 $63.71 at 0017 GMT, 42 cents, or 0.7%, above Friday's close.

The Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated producers including Russian Federation, known collectively as OPEC+, have withheld supplies since the start of the year to prop up prices.

Separately, Russian Finance Minister Anton Siluanov said oil prices could fall as low as $30 per barrel if OPEC and others did not extend the curbs.

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U.S. President Donald Trump said additional tariffs on Chinese goods were ready to kick in after the G20 summit this month if no trade deal is reached with China.

Oil prices fell more than 1% on Monday as U.S.

Despite Monday's increases, traders said concerns about the health of the global economy and its impact on fuel demand still weighed on oil market sentiment.

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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